Best Affirms Swiss Re (Canada) Ratings

December 28, 2004

A.M. Best Co. announced that it has affirmed the financial strength rating of “A+” (Superior) of Toronto-based Swiss Reinsurance Company Canada, and has assigned an issuer credit rating of “aa”. The outlook for both ratings is stable.

“The affirmation reflects Swiss Re Canada’s superior capitalization, strong operating performance and market profile,” said Best. It also reflects Best’s view that Swiss Re Canada is a core operating subsidiary of its parent, Swiss Re. Best has also affirmed those ratings (See IJ Website Dec. 23).

Best’s bulletin continued as follows:

“Swiss Re Canada is the second-largest Canadian domiciled non-life reinsurance company based on net premiums written. In terms of operating performance, Swiss Re Canada leads the Canadian reinsurance industry, consistently generating strong operating earnings. This operating success has supported the internal generation of capital and provided the means for the company to comfortably support its current level of underwriting risk, while being a source of dividends to its parent. In addition, the company benefits from the superior financial flexibility and continued explicit and implicit support from the group.

Partially offsetting these positive rating factors is that, in A.M. Best’s opinion, Swiss Re Canada will be challenged going forward to maintain its positive underwriting trend in light of market softening.”

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