SR International Business Insurance placed on review for possible upgrade
Moody's Investors Service has assigned an insurance financial strength rating (IFSR) of Aa2 to Swiss Re Europe an operating company owned by Swiss Re.
The outlook on the rating is negative. The rating and the outlook are in line with those of Swiss Re because of Swiss Re Europe's core status within the Swiss Re Group.
Swiss Re Europe, domiciled in Luxembourg, is expected to become one of the main operating companies in the Swiss Re Group with a premium income in excess of CHF 8bn (£3.3bn).
The reinsurance business of various existing Swiss Re entities in Europe will be transferred to Swiss Re Europe by way of portfolio transfer or merger.
The restructuring is expected to take place throughout 2008 and the first half of 2009, and upon completion will enable Swiss Re to streamline its organisational structure in Europe while achieving expense synergies.
Moody's also placed on review for possible upgrade the Aa3 IFSR of SR International Business Insurance. The company has recently been transformed into a plc and is expected to be transformed into an SE later this month by way of merger with RMN (Reassurantie Maatschappij Nederland NV).
The company's name will change to Swiss Re International SE ("SRI") and it will continue its role as primary insurance carrier for Fortune 2000 clients. Moody's review for possible upgrade will focus on the changes currently being implemented, and in particular the extent to which SRI is an increasingly core element of the wider Swiss Re Group.
