International rating agency Standard & Poor’s affirmed its single-‘A’-plus counterparty credit rating and insurer financial strength ratings on reinsurance companies Converium Ltd., Zurich Reinsurance (North America) Inc., and Zurich Ruckversicherung (Köln) AG, subsidiaries of Converium Holding Ltd., Zurich Financial Services’ reinsurance division, and removed them from CreditWatch/Negative.
Converium commenced operations Oct. 1, taking over ZFS’ third-party reinsurance operations. The company plans to spin-off Converium as an independent company later this year in an initial public offering.
S&P had placed Converium and its subsidiaries on CreditWatch following the Sept. 11 attacks in the U.S. An agreement between ZFS and Converium, which provides that ZFS will assume all liabilities related to the attacks above $289 million, and will assume the risk of nonperformance of retrocessionaires with regard to related losses, prompted S&P to remove it from the list, reaffirm the rating, and give Converium a “stable” outlook.
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