Fitch Ratings, the international ratings agency, has affirmed its ratings on Zurich Insurance Company, following improved results from ZIC's parent, Swiss insurance group Zurich Financial Services.
Fitch noted that ZFS had made progress on its plan to refocus its activities, strengthen its capital base and improve the performance of core operations, which include ZIC.
Fitch held ZIC's insurer financial strength rating steady at `A', while its long-term rating remained at `A-minus'.
The agency said it had taken into account the "significant" reserve increases that ZFS made against discontinued lines of business in its `Centre' unit. It added that further deterioration was likely as the unit completed a detailed reserve review.
ZFS reported a net income of $0.7bn for the first half of 2003, compared with a loss of just over $2bn for the same period in 2002. This profitability, combined with currency effects and unrealised gains on investments, contributed to an 11% increase in shareholders' equity for the first six months of 2003.
