HIH Rating Review Australian-based insurance group HIH International Holdings Pty Limited has obtained in excess of 97 percent of FAI Insurances Limited and is proceeding with the compulsory acquisition of the remaining FAI shares. The successful acquisition of FAI makes HIH Insurance Australia's largest general insurer, with A$2.6 billion (NZ$3.15 billion) in gross written premiums and a diversified range of brands and product distribution capabilities. Following the announcement of the successful acquisition, ratings agency Standard & Poor's revised the financial strength rating of the HIH Group to ``A'' and removed the rating from Credit Watch. At the same time the rating for FAI (Australia) was upgraded from ``BBB'' to ``A''. Standard & Poor's have commented that the ratings outlook is stable and operating performance should improve in the medium term. The rating applies to the following New Zealand entities: HIH Casualty & General Insurance (N.Z.) Limited. CIC Insurance Limited (New Zealand branch). CMG Insurance Company (N.Z.) Limited. The above ratings are dated on the 22nd day of January 1999. A copy of the rating scale is available for inspection at any office of the above companies. This notice is made, pursuant to the Insurance Companies (Ratings and Inspections) Act 1994.