Zurich Financial Services Australia says the re-rating of its general and life insurance businesses by Standard & Poor's to A+ (from AA-) results from adverse trends and run-off from prior years' claims.
The company says the factors significantly impacting on the 1999 results also include the Sydney hailstorm and the significant costs incurred in the transition to, and implementation of, Australian G.S.T.
Rating: A+ Creditwatch Negative
Rating Date: 1 June 2000.
The Rating Scale is:
AAA (Superior) BBB (Adequate) CCC (Extremely Vulnerable)
AA (Excellent) B (May be Adequate) R (Regulatory Action)
A (Good) B (Vulnerable)
Zurich International New Zealand is a branch operation of Zurich Financial Services Australia, which is a wholly owned subsidiary of the Zurich Financial Services Group, one of the 20 largest financial services companies in the world.
The Zurich Group has AA+ Standard & Poor's rating.
For Further Information Contact: Graham Turnock, Manager New Zealand. Telephone: (09) 377 3381.