Moody’s Investors Service has affirmed its ratings on Zurich Insurance, based on the company’s strong market position in a range of countries and its business and geographic diversification.

The balance between life and non-life is also improving, although the company remains property and casualty-oriented, Moody’s says.

“Its business is geographically well diversified, with recent significant growth in Latin America and volume declines in Europe a feature.”

Challenges include risks from long-tail lines and a relatively high level of goodwill and intangible assets in relation to equity, Moody’s says.

“The group, like others, faces the challenge of the current low-investment-yield environment and a challenging outlook in a number of its business areas.”

Zurich is committed to improving its combined ratio and cutting costs, Moody’s says. Last year’s return on capital was “a very good” 8.5%.

Insurance financial strength ratings on Zurich are affirmed at Aa3, while ratings on senior debt stay at A1. The outlook is stable.