Winterthur Insurance Group has had its outlook rating downgraded from stable to negative, Moody's has announced.

Winterthur is to raise its provision in connection with the sale of Winterthur International to XL Insurance (Bermuda) by CHF310m before tax.

Moody's said this would have imolications for the Group's rating.

The ratings agency also said the provision could rise further when the sale is completed with the support of an independent actuary.

Moody's said it considers such a revision to be a possibility “given the nature of the arbitration process.”

There was also some uncertainty regarding the insurer's future as part of the larger Credit Suisse Group, the ratings agency said.

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