S&P Affirms ‘AA’ Ratings for CGNU Group

September 10, 2001

Standard & Poor’s has affirmed its double-‘A’ counterparty credit and insurer financial strength ratings on the core operating companies of the CGNU Group, and removed Norwich Union Holdings from CreditWatch.

The ratings, based on S&P’s analysis of changes that had occurred since the merger of CGU with Norwich Union, stressed that the company was now the U.K.’s largest insurance group, was within the top 5 European life insurers, and within the top 10 globally.

“CGNU has an extremely strong domestic base and significant positions in France, the Netherlands, Ireland, Spain, Italy, Canada, Australia and New Zealand. Premiums in 2000 for continuing operations were GBP 24.5 billion ($37 billion) — a 10% increase over pro forma 1999 premiums,” S&P’s report stated. So far this year the group has collected premiums totaling £13.1 billion ($ 19.13 billion), an 8 percent increase.

All 21 core companies within the group received the double-‘A’ rating. S&P noted that “the group capitalization is strong, but is not at ‘AA’ level.” It expects CGNU, however, to to “fulfill its plans to strengthen its capital base to fund future growth.”|”snp, affirms, ‘aa’, ratings, cgnu, group

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