S&P Assigns Rating to Mitsui Sumitomo (London)

June 15, 2004

Standard & Poor’s Ratings Services announced that it has assigned its “AA-” insurer financial strength rating to London-based Mitsui Sumitomo Insurance (London) Ltd. (MSIL). The outlook is stable.

“The rating on MSIL is supported by a guarantee provided by Japan-based Mitsui Sumitomo Insurance Co. Ltd. (MSI; AA-/Stable/A-1+) and is, therefore, driven by the ratings on MSI,” stated S&P credit analyst Marcus Rivaldi. “Standard & Poor’s expects MSI to ensure that all valid claims made by MSIL’s policyholders are honored and, as a consequence, the ratings on MSIL will move in tandem with those on MSI,” he added.

S&P also noted: “MSIL will continue underwriting financial lines business as previously developed within the U.K. branch of MSI. It intends to maintain a specialization in sectors such as residual value and credit enhancement. The explicit support agreement meets all of Standard & Poor’s guarantee criteria including that affecting the alternative risk transfer sector. Were the guarantee to be terminated, a review of the rating on MSIL would be triggered. Termination will not, however, affect the protection afforded to MSIL’s existing policyholders through the guarantee, as MSI’s liability in respect of all policies issued or renewed by MSIL prior to the date of any termination will remain in force.

“The outlook on MSIL is stable reflecting the stable outlook on its guarantor, MSI.”

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