S&P PUTS SWISS RE'S DUTCH LIFE OP ON LOWER RATING

Rating agency Standard & Poor's has revised its assessment of Netherlands-based life business of Algemene Levensherverzekering Maatschappij NV (ALHM), part of Swiss Re's Admin Re operation, following the announcement by Swiss Re that it would be selling its US life operation REALIC to Prudential UK's Jackson National Life. The operation is now rated 'A-', down from 'AA-', on the grounds that S&P now considers the business to be non-strategic to Swiss Re. "The sale of REALIC, and Swiss Re's recent focus on unlocking capital from within the group, highlights a more transactional approach and wider strategic options for the Admin Re business unit, compared with other parts of the group", said S&P. ALHM is not currently writing new business and makes up less than 1% of Swiss Re's liabilities and equity. On a standalone basis ALHM is rated bbb+, while one notch is added because of group support, "taking into account Swiss Re's stated intent to grow the Admin Re book in continental Europe". S&P said that "we continue to believe that the Admin Re business unit remains important to Swiss Re's group strategy. We expect Admin Re to continue to execute new transactions". Meanwhile S&P will be evaluating the position of REALIC within Jackson National Life. S&P does not anticipate rating the operation higher than 'AA' or lower than 'A-'.