The ratings on the various operating entities of Switzerland-based insurance group Zurich Financial Services (collectively ZFS), including the members of the Zurich U.S. Intercompany Pool (ZUS), reflect the major and sustained improvement in ZFS' operating performance and management's commitment to further operational improvements, combined with a track record of successfully implemented efficiency improvements and further enhanced risk-management capabilities. Standard&Poor's Ratings Services believes that ZFS' overall reserve position is adequate and represents a further factor supporting the ratings. In addition, the ratings on ZFS continue to reflect its very strong competitive position and strong capitalization. Partially counterbalancing these strengths is the still unsatisfactory, although improving, operating performance at the U.S. operation, which is not yet aligned with the group's
