Standard & Poor’s today affirmed its “AA-” counterpary credit and insurer financial strength ratings on Dutch companies Royal Nederland Schadeverzekering N.V., Royal Nederland Levensverzekering N.V., and London Verzekeringen N.V. (together known as the Royal Nederland Verzekering Group; RNV). All ratings were removed from Credit Watch where they were placed with developing implications on Sept. 22, 2000. The outlook is negative.
The ratings are based on the companies’ strategic importance to France-based AGF — Assurance Generales de France (AGF; AA/Stable/A-1+) and its parent Allianz AG (AA+/Stable/A-1+), and, as a group, their strong business position in Dutch domestic property/casualty insurance, their strong operating performance and capitalization.
Offsetting these strengths is RNV’s modest position in the Dutch life market. Following the planned acquisition from AGF of Dutch composite insurance group Zwolsche Algemeene — including Zwolsche Algemeene Schadeverzekering N.V. (“Api”) and Zwolsche Algemeene Levensverzekering N.V.(not rated), RNV’s capitalization is expected to drop to the “A” range from “AAA” levels historically; the negative outlook reflects the additional downward pressure on capital that may arise when the two businesses are merged.
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