S&P Rates Swiss Re Europe ‘AA-‘

September 11, 2007

Standard & Poor’s Ratings Services has assigned its ‘AA-‘ counterparty credit and insurer financial strength ratings to Luxembourg-based composite reinsurer Swiss Re Europe S.A. with a stable outlook.

“The ratings on Swiss Re Europe reflect its core status within the Swiss Re group,” which S&P also rates as ‘AA-‘ with a stable outlook. S&P credit analyst Peter Grant explained: “Swiss Re Europe’s core status is predicated on the integral role it will perform, going forward, as the group’s principal risk carrier for European reinsurance. Swiss Re Europe’s formation is a critical part of Swiss Re’s ongoing initiative to streamline its legal structure.”

Beginning in November Swiss Re Europe will begin accepting the transfer of the assets, liabilities, and ongoing business of Swiss Re’s numerous existing reinsurance subsidiaries in Europe. S&P said that as a consequence it “expects that the ratings on the affected subsidiaries will be withdrawn in due course,” as the Group ensures “the orderly run-off of each of the affected subsidiaries, where applicable.”

S&P also noted: “As part of the legal restructure, SR International Business Insurance Co. PLC (SRI; AA-/Stable), already a core member of the group, will be transformed into a Societas Europaea (SE) and redomiciled to Luxembourg during the first quarter of 2008. Upon redomicilation, SRI will change its name to Swiss Re International SE and will become Swiss Re’s principal risk carrier for European non-life insurance.

As a core member of the group, the ratings on Swiss Re Europe will move in lockstep with those on Swiss Re. Consequently, the stable outlook on Swiss Re Europe is tied to the outlook on the group.”

Source: S&P

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