S&P Affirms UMS Generali Marine ‘A-‘ Rating

October 6, 2004

Standard & Poor’s Ratings Services announced that it has affirmed its “A-” long-term counterparty credit and insurer financial strength ratings on UMS Generali Marine SpA (UMS) with a positive outlook.

The ratings on UMS “reflect its strategic importance to its parent, Assicurazioni Generali SpA (Generali; AA/Stable/–), good competitive position, and strong capitalization,” stated S&P credit analyst Antonello Aquino.

“Offsetting these positive factors are UMS’ high reliance on reinsurance and the ongoing risks associated with the company’s recent expansion into the London market,” S&P observed. “Generali considers marine underwriting to be one of its strategic business lines, and UMS is considered to be the group’s center of excellence for the marine hull business,” it added.

“We expect that UMS’ underwriting results will improve in 2004 and 2005, including a positive contribution from the London market business. We also expect that capitalization will remain at a strong level despite the higher capital absorption stemming from the growth in NWP. An upgrade continues to be dependent on the establishment of an earnings track record in respect of UMS’ London market business,” Aquino concluded.

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