Zurich reported a ratio of 267 percent on the Swiss Solvency Test (SST), improving from 212 percent the previous year. The insurer attributed the improvement to a rise in interest rates across all currencies and strong underlying capital formation, according to a statement Friday. 

Insurance companies in Switzerland are required to publish a report on their solvency position within the SST benchmarks by the end of April each year. The minimum passing grade is 100 percent.

Strong Credit Ratings

Zurich confirmed the Group's strong financial position and solid balance sheet. Moody's rates Zurich Insurance Company «Aa3 positive» and S&P as «AA/Stable», making Zurich Insurance one of the first European insurers to approach the «Aa2» level.

Overall, insurers are benefiting from the higher interest rate level compared to the previous year, after the Swiss National Bank abandoned its policy of negative interest rates. In mid-April 2023, Swiss Re reported an improvement in its solvency ratio to 294 percent from 223 percent previously.