Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Brightbridge Wealth Management Headlines: Swiss Re reclaims prized S&P credit rating

By Brightbridge Wealth Subscribe to RSS | January 6th 2012 | Views:

(Reuters) – Swiss Re (SRENH.VX) has regained a prized credit rating lost during the financial crisis, a key step toward the reinsurer’s goal of expanding its business.

Standard & Poor’s on Friday raised its rating on Swiss Re to AA- with a stable outlook from A+, citing the company’s strong capital base.

“The impact should be positive, allowing Swiss Re to deploy more of its capital into reinsurance underwriting and also apply a somewhat more flexible investment strategy,” analysts at Vontobel said.

Swiss Re lost its double A rating in 2009 after risky investments put its capital base in jeopardy, forcing it to take an emergency 3 billion Swiss franc ($3.48 billion) loan from U.S. billionaire Warren Buffett.

The Zurich-based reinsurer repaid the Buffett loan late last year, and some analysts have been speculating the firm could be ripe for a ratings upgrade.

Swiss Re said earlier this year its goal was to reclaim the prized rating, expand its business, and then possibly return cash to shareholders.

A share buyback or other form of capital return could come in 2013, said Ben Cohen, an analyst at Collins Stewart in London.

“It’s still a prospect on an 18-month view, not least because to hit their return on equity targets they do need to improve the capital-efficiency of the business, and a buyback would be a good way to do that,” Cohen said.

Swiss Re successfully reduced the riskiness of its investment portfolio, repaid the convertible bond held by Buffett’s Berkshire Hathaway (BRKa.N), stabilized net income and maintained capital in excess of the top-tier ‘AAA’ level, S&P said.

“The stable outlook reflects our expectation that Swiss Re will maintain its very strong competitive position,” the ratings agency also said. “We expect net income in 2011 to be strong and stable.”

A spokesman for Swiss Re declined to comment.

Swiss Re’s shares were trading down 0.7 percent at 1500 GMT, outperforming a 1.8 percent fall in the sector index .SXIP.

The fall in the shares was due to profit-taking after a rise during the previous session, several traders said.

Swiss Re presents third-quarter results on November 3. The reinsurer’s rating had been cut from AA- by S&P in February 2009.

Brightbridge Wealth - About Author:
Brightbridge Wealth Management
Brightbridge Wealth
100 Park Avenue
New York City, New York 10017
United States
212 880 6400

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:

Related Business Articles Subscribe to RSS

POS management system – helping businesses as well as its customers
Published by Diego Hall on December 2nd 2011 | Business
POS management system is a technology that helps not only businesses but its clients or customers as...
The Importance of Letting agents and Residential property management Dublin
Published by Leslie Hoffman on January 14th 2012 | Business
Hiring experienced letting agents and residential property management Dublin is extremely important ...
The Katale Partnership are without question leading management consultants
Published by Julia Roger on March 23rd 2012 | Business
Are you looking to improve your business practices so that your business can function better as a wh...
Make waste management easy with skip bins
Published by Matthew Arthur on August 6th 2012 | Business
Waste, trash or garbage is needed to be disposed in a proper way. There are many reputed companies w...
Claim management firms find 12 million pound PPI payout
Published by Sam Hopkins on February 14th 2012 | Business
About 12 million pound payable to the customers beneath the protection net for those who have been p...
Financial management of a small business
Published by Adam Walker on April 11th 2012 | Business
Small business owners tend to many times think that it is best to do all the work by themselves. Tha...
Spend analytics and Supplier relationship management at times of uncertainties
Published by Glenn Farrier on March 7th 2012 | Business
With globalization, businesses are spreading their presence all across the globe. This also brings w...
Cable and wire management
Published by Abhishek Gupta on July 17th 2012 | Business
Find an incredible selection of wire connecters terminals, wire terminal connectors, insulated wire ...
Off-site records management is always a more secure option
Published by Nancy Deholla on January 13th 2012 | Business
Document and records management provided by an external source is the most secure option for busines...
Outsourcing Payroll management services for small business in Delhi NCR
Published by Webin Lee on March 6th 2012 | Business
It is cheap to outsource the Accounting and Payroll services from the payroll management company rat...
Some advantages of the fulfilment houses and the stock management companies
Published by Diego Hall on January 9th 2012 | Business
A business can only be successful enough when it is dealt professionally in terms of stock managemen...
Building management services- Setting up new relations
Published by Julia Roger on May 9th 2012 | Business
The owners corporation management services are taxed on profits and are permitted deductions for sal...
Versatile restaurant management systems available online
Published by Vem Call on May 24th 2012 | Business
In today's competitive hospitality market, meeting a customer's expectations is imperative in order ...
Strata management solution and benefits
Published by Chris Whelan on February 29th 2012 | Business
Previously people didn’t face such difficulties during dividing their property or acquiring their ...
Contractor Expenses – effective cost management
Published by Crowin Smith on April 3rd 2012 | Business
Managing a business is a hard task when the world economy is not creating the right condition that f...
A win-win situation for both an organisation as well as debt management companies by hiring a debt collector agency.
Published by Gabi William on March 27th 2012 | Business
We do all the hard work for you and approach each case very seriously - no matter what the size....
Handle all aspects of property with Dallas property management companies
Published by James Blee on June 9th 2012 | Business
Dallas property management companies are one of the reputed names in handling all aspects of propert...
Efficient ship management - the biggest need of shipping business
Published by Saurabh Pandey on December 3rd 2011 | Business
If you are the owner of a ship then you might be looking for someone who can manage it so that you g...
Advantage of Joomla for a content management system
Published by Roney on February 7th 2012 | Business
Joomla hosting allows users to keep track of each part of the website content users are more or less...
Services Offered by Property management Sioux Falls Companies
Published by Julia Roger on May 25th 2012 | Business
The Property management Sioux Falls companies are the most famous names in business. They have earne...