S&P Rates Hibernian ‘A+’/Stable

March 28, 2007

Standard & Poor’s Ratings Services has assigned its “A+” long-term counterparty credit and insurer financial strength ratings to Republic of Ireland-based non-life insurer Hibernian General Insurance Ltd. (HGI) with a stable outlook.

“The ratings on HGI reflect the company’s strategic importance to the Aviva group, as well as its strong operating performance, strong competitive position, and strong capitalization,” stated S&P credit analyst Matthew Day. “These positive factors are partly offset, however, by the exposure to the highly competitive Irish insurance market.”

S&P said the “stable outlook on HGI reflects that on the Aviva group. A change in the ratings or outlook on Aviva is likely to be mirrored by similar rating actions on HGI.”

Day added that “HGI is expected to maintain pricing discipline in the softening market, and should continue to contribute positively to group performance targets. Maintenance of capitalization at least at the strong level is also expected, and material shortfalls would prompt a rating review.”

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