A.M. Best Upgrades Zurich Insurance Company Ltd.

A.M. Best has upgraded Zurich Insurance Company Limited’s financial strength rating (FSR) to ‘A+’ (superior) from ‘A’ (excellent). The insurers’ issuer credit rating was upgraded from “aa-” to “a+.”The rating upgrade applies to the insurer’s Canadian branch, A.M. Best confirmed. The upgrade of Zurich’s ratings reflect anticipated improvement in consolidated risk-adjusted capitalization at year-end 2010, and A.M. Best anticipates that this enhanced capitalization will be maintained into 2011 and beyond, a release says.”Zurich’s main business units are all expected to contribute positively, although earnings from the general insurance division are likely to reduce due to the impact of above average loss experience during the year, as well as a reduction in premiums,” the A.M. Best release continues.  “Gross written premiums for non-life business are expected to reduce marginally in 2010 compared with 2009, driven by weak demand due to the economy, combined with the group’s focus on achieving rate increases.”