The ratings on the various operating entities of Switzerland-based insurance group Zurich Financial Services (ZFS), including the members of the Zurich U.S. Intercompany Pool, reflect Standard&Poor's Ratings Services' view of ZFS' very strong underlying operating performance, strong enterprise risk-management (ERM) program, and the group's very strong competitive position. These strengths are partly offset by our opinion that ZFS' capitalization, although improved, remains a relative rating weakness. The group's average underlying operating performance in 2006-2010 remained very strong and broadly in line with our expectations, despite unfavorable financial markets and operating conditions. The business operating profit (BOP) aftertax return on equity has continually exceeded the group's target of 16%. The five-year average BOP was 17.1%, partly, we believe, as
