Research Update: Zurich Insurance Co. Ltd. Affirmed On Solid Capital Despite Nonreplacement Of Hybrid Bond; Outlook Stable

Zurich Insurance Co. Ltd. (ZIC) plans to redeem a €500 million hybrid bond on its first call date. We understand that the bond will not be replaced. We do not expect the redemption to have a material impact on ZIC's capitalization. We maintain our assessment of the intermediate equity content of the remaining hybrid bonds because the amount ZIC has redeemed is immaterial in our assessment of capital. We therefore affirmed our 'AA/A-1+' long- and short-term issuer credit ratings and 'AA' financial strength rating on ZIC and its related core entities. The stable outlook reflects our view that, over the next two years, ZIC's globally diversified business profile will allow it to source strong and stable earnings and remain among

...Financial strength rating ## ## Anchor ## ## Business risk Very strong Very strong IICRA Intermediate Intermediate Competitive position Excellent Excellent Financial risk Very strong Very strong Capital and earnings Very strong Very strong Risk exposure Moderately low Moderately low Funding structure Neutral Neutral Modifiers 0 0...

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