Zurich Insurance Group has released its Financial Condition Report 2022, confirming the Group’s strong financial position and sturdy balance sheet.
Zurich has also maintained its strength ratings with AM Best, while Moody’s raises its grade for the insurer.
As of January 1, 2023, the Group Swiss Solvency Test (SST) ratio was 267%, up from 212% the previous year, indicating an increase in interest rates across all currencies and strong underlying capital generation.
The Financial Condition Report is a regulatory disclosure mandated by the Swiss Financial Market Supervisory Authority FINMA and provides comprehensive information on the Group’s solvency and financial strength, including business performance, governance, Zurich’s risk profile, valuation for solvency purposes, and a description of how the Group manages capital.
Zurich maintains positive ratings with Moody’s and AM Best
According to the data, Zurich maintained its strong rating level, with its main operating entity, Zurich Insurance Company Ltd, receiving an Insurance Financial Strength Rating of ‘AA/Stable’ by S&P Global Ratings, ‘Aa3/positive’ by Moody’s, and ‘A+ (Superior)/Stable’ by AM Best, with an AM Best Issuer Credit Rating of ‘aa–/positive’.
On January 13, 2023, Moody’s changed Zurich Insurance Company Ltd’s rating outlook from ‘Aa3/stable’ to ‘Aa3/positive’, positioning the company among the first European insurers to approach the Aa2 level.
These ratings are a reflection of Zurich’s balanced business mix, strong and stable profitability, disciplined capital management, and reduced exposure to interest rate and credit risks.
Zurich’s target is to maintain capital consistent with an “AA” financial strength rating, which translates into an SST ratio target of 160% or above.
Join Zurich experts in New York at ITI USA
To find out more about Zurich’s latest strategies and innovations, join expert data scientist, Jennifer Hobbs for her expert panel session, ‘A Look into the Crystal Ball: Navigating the P&C Insurance Value Chain of 2030’ at Insurtech Insights USA 2023 on June 7th and 8th, at the Javits Center in New York. Click here for info on registrations.
