Best, S&P Rate Generali $653 Million Debt Issue

April 22, 2005

A.M. Best Co. and Standard & Poor’s Ratings Services have assigned an “a+” and an “AA-” senior unsecured debt rating respectively to the 500 million euro ($653.4 million) notes due in 2015 launched by Generali Finance B.V. of the Netherlands.

The notes are part of a 2.5 billion euro ($3.267 billion) medium term note program initiated by Italy’s largest insurer. S&P noted that the debt issue would “carry the full guarantee of Assicurazioni Generali SpA (AA/Stable/–), the ultimate parent company of the Italy-based insurance group Generali.”

Best indicated that the “proceeds of the issue will replace debt maturing within 2005. As such, the new issue is not expected to increase Generali’s debt leverage which remains in line with A.M Best’s tolerance levels.” However, Best has lowered its ratings on Generali’s other debt instruments (see following article).

S&P said the “assigned rating is based on the assumption that the actual debt issue will, for all material consideration, be consistent with the advance information provided to Standard & Poor’s. The rating reflects the underlying financial strength of Assicurazioni Generali SpA as the guarantor, and takes into account that the proceeds from the proposed issue will be used to refinance maturing debt. Accordingly, both debt leverage (debt-to-debt plus total adjusted capital) and interest coverage will remain unchanged and in line with the current rating level.”

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