& Sun Alliance Accident Insurance Limited
Pursuant to clause 8 (1) of the Insurance Companies (Ratings and Inspections) Act 1994, Standard & Poor's Ratings Service has re-graded its insurer financial
strength and counter-party credit ratings on Royal & Sun Alliance Insurance (New Zealand) Limited, Royal
& Sun Alliance Liability Insurance Limited and Royal & Sun Alliance Accident Insurance Limited to "A-" from "A" on
8 November 2002.
This rating is defined as "strong".
This action follows the re-grading of United Kingdom-based parent company Royal & SunAlliance Insurance Group PLC.
Royal & SunAlliance Insurance Group PLC ratings have been removed from credit watch with negative implications by both Standard & Poor's and AM Best ratings agencies.
In its report Standard & Poor's stated:
"The outlook is developing. Rather than maintain the credit watch, ratings have been lowered and equalised with the parent's rating. The Australian and New Zealand general insurance operations reflect solid business and financial profiles independent from the Royal & SunAlliance Group."
The Standard & Poor's report states that a more definitive opinion on the Australian and New Zealand operations will be made after evidence of the forthcoming Initial Public Offering's success.
ALAN BRADLEY, Chief Executive.