Ratings Changes On MARC, Winterthur Int’l. Re

January 12, 2001

Standard & Poor’s lowered Winterthur International Reinsurance Co. Ltd.’s counterparty credit and insurer financial strength ratings from double ‘A’ to double ‘A-‘. A.M. Best, meanwhile confirmed its A++ (Superior) financial strength rating for Munich Re’s Atlanta based U.S. subsidiary, Munich American Reassurance Co.

“The rating downgrade of WIRE reflects the company’s modified role within the Winterthur Insurance Group (Winterthur Swiss Insurance Co.;AA/Stable/–) in which it is no longer acting as ‘captive’ reinsurer for the overall Winterthur Group,” S&P noted.

The action reflects Winterthur’s decision to conduct a strategic review of its commercial lines business. S&P is also reviewing Winterthur International Ins.Co. Ltd, the Group’s London based commercial lines insurer, and placed it on “Credit Watch with developing implications.” WIRE now provides reinsurance only for WIIC.

Best’s action removes MARC from under review following its acquisition of CNA’s life reinsurance operations and upgrades its financial strength rating.

“MARC is considered core and integral to the Munich Re group’s overall strategy to enhance its market position in the United States and is critical to its ongoing success and viability in the global life reinsurance market,” said A.M. Best.

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