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.
BMW Recalls Hundreds of Thousands of Cars Over Fire Risk 
State Farm Adjuster’s Opinion Does Not Override Policy Exclusion in MS Sewage Backup 
Insurify Starts App With ChatGPT to Allow Consumers to Shop for Insurance 
Viewpoint: How P/C Carriers Can Win the Next Decade With Tech + Talent 
