Global insurer Zurich Insurance Group maintained a strong financial position in 2020 in spite of the financial market volatility, elevated claims and voluntary measures to support both customers and employees linked to the outbreak of the COVID-19 pandemic.
Zurich has today released its Financial Condition Report 2020, which shows a decline in the Group Swiss Solvency Test (SST) ratio, as well as a capital base that remains well-above regulatory requirements despite the ongoing pandemic.
As of January 1st, 2021, the Group SST stood at 182%, compared with 222% a year earlier. Zurich attributes the decline to the deteriorating economic environment, notably lower for longer interest rates and heightened financial market volatility.
Additionally, the insurer also maintained its strong rating level in 2020 despite the challenges of the pandemic.
As of December 31st, 2020, Zurich Insurance Company Ltd., the Group’s main operating entity, had an insurance financial strength rating of “AA-/Positive” by S&P Global Ratings, “Aa3/Stable” by Moody’s, and “A+(Superior)/Stable” by A.M. Best. Then, a few months later, S&P upgraded the Group rating to “AA/Stable”.
George Quinn, Group Chief Financial Officer (CFO), commented: “2020 demonstrated the strength of the Group’s balance sheet. This strength allowed us to continue to support our customers when they needed it most, while rewarding shareholders with an attractive dividend. We will continue to focus on optimizing the use of our capital to further improve the Group’s financial performance.”