Research Update:

Ratings On Swiss Re And Core

Subsidiaries Affirmed; Liquidity

Management Considered Robust

Primary Credit Analyst:

Peter Grant, London (44) 20-7176-7086;peter_grant@standardandpoors.com

Secondary Credit Analyst:

Simon Marshall, London (44) 20-7176-7080;simon_marshall@standardandpoors.com

Table Of Contents

Rationale

Outlook

Ratings List

September 25, 2008

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Research Update:

Ratings On Swiss Re And Core Subsidiaries

Affirmed; Liquidity Management Considered

Robust

Rationale

On Sept. 25, 2008, Standard & Poor's Ratings Services affirmed its 'AA-'

insurer financial strength and long-term counterparty credit ratings on

Zurich-based global reinsurer Swiss Reinsurance Co. and its core subsidiaries.

The outlook remains stable.

The affirmation comes in response to the heightened level of investor

queries surrounding the resilience of Swiss Re's financial strength in light

of the increased turbulence in global financial markets over the past

fortnight.

Standard & Poor's expects both Swiss Re's liquidity and capital positions

to remain very strong.

Swiss Re has a robust liquidity management process in place. The spot

liquidity (liquidity sources, excluding committed external funding, readily

available to the group treasury function within seven days) currently

available to Swiss Re Zurich--the group's ultimate holding company and one of

its main operating entities--exceeds $20 billion.

To put this in some context, turbulence in global markets over the past

12 months has caused incremental collateral requirements for the group's

financial markets business estimated at approximately $3 billion, and the

group's largest historical single cash payment in respect of its traditional

reinsurance business has been less than $1 billion. Consequently, Standard &

Poor's expects the group's liquidity position to prove resilient to further

distress in the financial markets, even if that were to be coupled with a very

substantial insured loss event.

The group has also been able to access funding in a variety of forms in

recent weeks, at competitive rates, thereby providing tangible evidence of its

continued very strong financial flexibility.

We also expect Swiss Re's very strong capital position to remain

resilient in the face of continued market turbulence, and the group is still

expected to hold a substantial surplus to Standard & Poor's 'AA' level capital

target for the financial year ended Dec. 31, 2008. We expect further

significant unrealized losses on the group's corporate bond and asset-backed

securities portfolios to be partially offset by a reduction in asset risk

charges following the adoption of a more comprehensive hedging program in

respect of the credit risk inherent within the group's investment portfolio.

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Outlook

The stable outlook reflects Standard & Poor's expectation that capital

adequacy, as measured using our risk-based model, will remain at least very

strong. Standard & Poor's expects the combined ratio for the group (excluding

nontraditional business) to be less than 97.5% in 2008 and to remain below

100% in 2009. Return on equity (ROE) will be heavily influenced by the

investment return over the next 12-18 months, which will make it a challenge

for the group to meet its 14% (cross-cycle) ROE target in either 2008 or 2009.

For 2008 and 2009, total (life and non-life) return on revenue (ROR) of about

10% and non-life ROR exceeding 10% are expected. The ROR for life business is

expected to be about 9%.

A revision of the outlook on Swiss Re and its core subsidiaries to

negative would likely be driven either by the emergence of a capital shortfall

at the 'AA' level or by concerns about operating performance. An outlook

revision to positive, the likelihood of which is considered remote over the

rating horizon, would depend on the proven resilience of the group's very

strong capital position to the more testing economic and operating environment

that lies ahead. It would also depend on the group's ability to sustain its

operating performance at a very strong level, defined as Swiss Re meeting its

own target of an average ROE of 14% over the cycle. In addition, the group

would be expected to either perform in line with, or outperform, its similarly

rated reinsurance peers.

Ratings List

Ratings Affirmed

Swiss Reinsurance Co.

Counterparty Credit Rating AA-/Stable/A-1+

Financial Strength Rating AA-/Stable

NB: This list does not include all ratings affected.

Additional Contact:

Insurance Ratings Europe;InsuranceInteractive_Europe@standardandpoors.com

Ratings information is available to subscribers of RatingsDirect, the

real-time Web-based source for Standard & Poor's credit ratings, research, and

risk analysis, at www.ratingsdirect.com. It can also be found on Standard &

Poor's public Web site at www.standardandpoors.com; select your preferred

country or region, then Ratings in the left navigation bar, followed by Credit

Ratings Search. Alternatively, call one of the following Standard & Poor's

numbers: Client Support Europe (44) 20-7176-7176; London Press Office (44)

20-7176-3605; Paris (33) 1-4420-6708; Frankfurt (49) 69-33-999-225; Stockholm

(46) 8-440-5914; or Moscow (7) 495-783-4017.

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Research Update: Ratings On Swiss Re And Core Subsidiaries Affirmed; Liquidity Management Considered Robust

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Research Update: Ratings On Swiss Re And Core Subsidiaries Affirmed; Liquidity Management Considered Robust

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