Winterthur Swiss Ratings Unchanged from QBE Deal Says Best

A.M. Best Co. commented that the financial strength rating of “A-” (Excellent) and the issuer credit rating of “a-” of Winterthur Group (Switzerland) and its main subsidiaries remain unaffected following the announcement of the proposed acquisition of Winterthur US Group and its subsidiaries to QBE (See previous article).

Best said it “believes that the proposed transaction could have a positive impact on Winterthur’s consolidated risk-adjusted capitalization as the sale price of $1.2 billion would exceed the net asset value of $780 million of Winterthur US.” Best also noted that “Winterthur US has been a source of non-life underwriting profits since 2004 and achieved a combined ratio of 95.7 percent in the first nine months of 2006.”

Best said it would “continue to monitor the current integration and restructuring process following the completion of Winterthur’s acquisition by AXA S.A. in December 2006.”