S&P upgrades Zurich to positive

Rating agency Standard & Poor's (S&P) has upgraded Zurich Insurance’s outlook to positive following a review of the group’s non-life reserves and internal economic capital model.

S&P said that the revision reflects its growing confidence in the relative credit strengths of Zurich, compared with its peers.

“Our reserve review has reinforced our view that the group's profitability compares favourably with global multiline peers, supported by the non-insurance fee income from Farmers Management Services. We believe the resilience of its earnings profile, combined with the conclusions from our economic capital model review, are likely to sustain capital adequacy at very strong levels,” said the rating agency.

The positive outlook reflects the potential of a raise in ratings within the next 12-24 months.