Standard & Poor’s Ratings Services has stated that its ratings on XL Capital Ltd. (currently ‘A’ / Negative), all of XL’s related operating and holding companies, and Winterthur Swiss Insurance Co. (currently ‘A-‘ / Stable) “are likely to be unaffected by an actuarial decision that could result in an additional pretax charge of $909 million for either XL or Winterthur.”
S&P noted that the “eventual decision of the independent actuary relates to the settlement of a three-year reserve-seasoning process between the two companies associated with the sale of Winterthur International, a former subsidiary of Winterthur, to XL Insurance (Bermuda) in July 2001.
“If the actuarial decision goes against XL, Standard & Poor’s expects that XL would be able to offset the charge significantly through improving earnings and the generation of surplus in 2005. If the decision goes against Winterthur, Standard & Poor’s expects that Winterthur would be able to partly offset a potential need to increase provisions by $909 million through improving earnings.”
In addition S&P noted that it “continues to be comforted by Credit Suisse Group’s commitment to provide financial support to Winterthur if necessary as long as Winterthur remains within the group.” S&P rates Credit Suisse “A” with a stable outlook.
Was this article valuable?
Here are more articles you may enjoy.
Lawsuit Over Burger King’s Whopper Ads Set Back by Federal Judge 
Trump to Issue Order Creating National AI Rule 
Litigation Finance Hits a Wall After Bets on Huge Gains Falter 
Airline Pilots Hide Mental Health Struggles to Keep Flying 
