Standard & Poor’s (S&P) has affirmed its “A” insurer financial strength and counterparty credit ratings on non-life insurer Zurich Australian Insurance and life insurance subsidiary Zurich Australia.

The outlook for both companies, which together constitute Zurich Australia, is stable.

The rating follows S&P’s formal review of Zurich Australia’s business and financial position after the Australian Prudential Regulation Authority (APRA) announced in mid-June an investigation into reinsurance transactions at Zurich Australian Insurance.

S&P financial services ratings credit analyst in Craig Bennett says the outcome of the investigation is yet to be released but it is expected the company will be able to maintain its current rating level in the medium term.

The recently appointed Australia-based CEO of Zurich Australia, Tom Brown, was reported in yesterday’s Australian Financial Review as saying he is confident the APRA inquiries will be resolved soon. He said he spoke with the regulators before joining Zurich as CEO, and he would not have taken the position if he had not been confident of a resolution.