Zurich Insurance downgraded to negative by AM Best

October 8 2015 by InsuranceAsia News Staff

Zurich Insurance has received a downgraded outlook from AM Best due to the recent high losses following the explosions at the Port of Tianjin in China.

AM Best downgraded the outlook for Zurich from stable to negative but affirmed the insurer’s financial strength rating for A+ and its issuer credit rating of aa-, the ratings agency disclosed.

According to the agency, the outlook for Zurich was downgraded on concerns that it will face challenges in improving its performance.

AM Best expects Zurich’s general insurance earnings to drop by about US$275 million in the third quarter of this year due to its exposure in Tianjin.

Zurich earlier reported a 31% decline in business operating profit to US$1.166 billion for its portfolio.

MORE FROM: Ratings