The ratings on Swiss Reinsurance Co. and related core subsidiaries of the Swiss Re group (Swiss Re) are based on Swiss Re's extremely strong business position--particularly in the life reinsurance business--and superior management team. These factors are partly offset by the group's marginal recent non-life underwriting performance Major rating factors: Very strong capital adequacy. Although remaining very strong, capital adequacy has fallen from its extremely strong historic levels, and consequently is no longer consistent with an 'AAA' rating. Although the substantial capital-raising program in 2001 fully offset the reduction in shareholders' funds arising from the Sept. 11, 2001-related loss and from unrealized investment losses, premium growth and unrealized losses during 2002 have nevertheless reduced risk-based capitalization. Capital adequacy is underpinned
