Norwich Union Life Insurance (NZ) Limited Insurance Companies (Ratings and Inspections) Notice On the 11th day of December 1997, credit rating agency Standard & Poor's lowered the claims-paying ability rating on Norwich Union Life Insurance (NZ) Limited to A from AA. At the same time the rating is placed on CreditWatch Developing. The rating action follows the announcement that the Norwich Group is reviewing strategic options for its life and funds management businesses in New Zealand, including a possible sale. The A rating represents the claims paying ability of Norwich Union Life Insurance (NZ) Limited on a standalone basis. The standalone rating is based on the company's strong balance sheet structure, conservative risk profile and satisfactory business franchise, tempered by the company's smaller size in the highly competitive life insurance market in New Zealand. The rating is placed on CreditWatch Developing reflecting the uncertainty arising from a potential change of ownership, and the associated impact on the company's future financial structure and strategy. Norwich Union Life Insurance (NZ) Limited will remain on CreditWatch Developing until its future ownership position is resolved.