S&P gives Swiss Re AA- rating pending transfer of assets

Standard & Poor's Ratings has assigned its 'AA-' counterparty credit and insurer financial strength ratings to Luxembourg-based composite reinsurer Swiss Re Europe SA (Swiss Re Europe). The outlook is stable.

The ratings on Swiss Re Europe reflect its core status within the Swiss Re group.

"Swiss Re Europe's core status is predicated on the integral role it will perform, going forward, as the group's principal risk carrier for European reinsurance. Swiss Re Europe's formation is a critical part of Swiss Re's ongoing initiative to streamline its legal structure," said Standard & Poor's credit analyst Peter Grant.

With effect from November 1, 2007, Swiss Re Europe will begin accepting the transfer of the assets, liabilities, and ongoing business of Swiss Re's numerous existing reinsurance subsidiaries in Europe.

As a consequence, Standard & Poor's expects that the ratings on the affected subsidiaries will be withdrawn in due course. As part of the legal restructure, SR International Business Insurance Comapny, already a core member of the group, will be transformed into a Societas Europaea (SE) and redomiciled to Luxembourg during the first quarter of 2008.

Upon redomicilation, SRI will change its name to Swiss Re International SE and will become Swiss Re's principal risk carrier for European non-life insurance.

As a core member of the group, the ratings on Swiss Re Europe will move in lockstep with those on Swiss Re. Consequently, the stable outlook on Swiss Re Europe is tied to the outlook on the group.