Moody's Investors Service has said it has placed the Aa2 insurance financial strength and senior debt ratings of Swiss Re on review for possible downgrade, following the $6.8bn purchase of GE Insurance Solutions.
Moody's also placed the Baa1 debt rating of GE Insurance Solutions on review for possible upgrade.
Moody's said it was concerned about the "execution risks associated with the transaction". The agency added that "it remains to be confirmed whether the target is reserved to the same standard as Swiss Re, despite the newly announced $3.4bn reserve strengthening'".
Moody's said however that the transaction "has a number of advantages for Swiss Re", including access to new clients and market segments, potential synergy benefits, and further risk diversification.
