Moody's confirms Swiss Re

Moody's Investors Service confirmed the Aa2 insurance financial strength and senior debt ratings of Swiss Reinsurance Co. as well as its A1 subordinated debt rating.

The outlook is negative.

The decision to place the ratings on review for possible downgrade was made Nov. 18, 2005 in light of the announcement by Swiss Re that it had agreed with General Electric Co. to acquire GE Insurance Solutions for $6.8 billion.

At the time, Moody's main concerns related to the execution risks associated with the transaction, particularly Swiss Re's ability to rapidly implement its underwriting and risk-management policies at the acquired entity.

Having completed the review, Moody's said it came to the conclusion that the creditworthiness of the combined group is consistent with an Aa2 rating level. Moody's said the transaction, when completed, has a number of advantages for Swiss Re, including access to new clients and market segments where it was previously underrepresented, potential synergy benefits and further risk diversification.

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