Standard & Poor’s (S&P) said the A counterparty credit and insurer financial strength ratings for Zurich Specialities London (ZSL) were to remain on CreditWatch with negative implications.
They were placed on CreditWatch on 18 December 2003 following ZSL’s announcement of significant reserve strengthening, said S&P.
“Standard & Poor's has met with management to discuss the reserve strengthening and expects to resolve the CreditWatch by the end of May 2004, once a detailed analysis of the reserves is complete,” said credit analyst Paul Oates.
Despite the reserve strengthening, the ratings agency said risk-based capitalisation remained strong, with the company expecting ZSL’s 2003 underwriting results to show improvement.
