ZURICH (AFX) - Converium Holding AG is overcapitalised but once the Swiss reinsurer's credit ratings have been upgraded growth is a higher priority than returning cash to shareholders, new chief executive Inga Beale said.
Asked in an interview with Finanz und Wirtschaft if Converium is overcapitalised, Beale said: 'I think so. First of all we need now the ratings upgrade; afterwards we will be able to allocate our capital more effectively and generate more business volume .. For me profitable growth comes first.'
Beale also said she expects Standard & Poor's to restore Converium's A ratings before the start of the autumn contract renewals.
Converium shares tumbled in 2004 after the company was forced to boost its US reserves, leading to a rescue capital increase, credit rating downgrades and the departure of its CEO.
She also said the she sees a takeover of Converium as 'not very likely'. afx.zurich@afxnews.com scs COPYRIGHT Copyright AFX News Limited 2005. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited