Zurich’s strong regulatory solvency further improved as of May 31, 2009
Zurich, June 19, 2009 – Zurich Financial Services Group’s (Zurich) statutory solvency position is subject to a number of variables such as interest rate and equity movements, foreign currency fluctuation and credit spreads. Despite higher interest rates, and after other factors offsetting this, Zurich’s estimated Solvency I ratio as of May 31, 2009 was in excess of 180 percent, including a nine percentage point effect from the issuance of shares in April 2009. This compares with a Solvency I ratio of 157 percent at March 31, 2009. This increase shows the value of Zurich’s structured and disciplined approach to investment management, and further emphasizes the advantages of a well diversified investment portfolio and strong risk management processes.
The Analysts and Media Presentation on the Results Reporting for the Three Months to March 31, 2009 contained three incorrect sensitivities in the appendix slide 35 related to the Group solvency position (Solvency I). The sensitivities related to interest rates and equity movements have been corrected below. In isolation, these sensitivities could indicate a weakening of the regulatory Solvency I number in the current interest rate environment.
Download news release (PDF, 172 KB)