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 better-than-expected major and sustained improvement in ZFS' operating performance, strong and credible management commitment to value creation combined with a successful execution track record, and a positive impetus from a continuously improving enterprise risk-management program. Furthermore, the ratings on ZFS continue to reflect the group's very strong competitive position. Partially counterbalancing these strengths are a capitalization below that commensurate with the current rating level, ZFS' significant exposure to volatile industrial line business, and the strategic challenge of achieving profitable growth in the saturated European personal line business and in selected new emerging
