Swiss Re has lost its "triple-A" ratings from Standard & Poor's.

S&P said it was concerned about Swiss Re's capital level, "marginal" non-life underwriting performance and reduced financial flexibility.

S&P cut Swiss Re's (RUKZn) long-term counterparty credit and insurer financial strength ratings to "AA-plus" from "AAA," and affirmed its "A-1-plus" short-term ratings.

The downgrade, which might boost borrowing costs, came after Swiss Re said first half net profit fell more than 91% from a year ago.

S&P analyst Stephen Searby said: "S&P expects Swiss Re to achieve very strong operating performance over the next few years and consequently outperform the reinsurance industry average, earnings are not expected to be sustained at a level commensurate with a triple-'A' rating in the longer term."

Searby added that the "AA-plus" ratings reflect Swiss Re's "ongoing extremely strong and sustainable global business position," especially in life reinsurance.

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