Ratings Recap: Alliance Re; Aflac(debt); Unipol

June 18, 2007

A.M. Best Co. has affirmed the financial strength rating of “B++” (Good) and the issuer credit rating (ICR) of “bbb” of Cyprus-based Alliance International Reinsurance Public Company Limited. The outlook for the FSR remains stable, and the outlook for the ICR has been revised to positive from stable. “The positive outlook reflects the company’s improving business profile and financial performance and its enhanced risk management due to its recently developed internal risk capital model,” said Best.

Standard & Poor’s Ratings Services said today it has assigned its “A” senior debt rating to Aflac Inc.’s ¥30 billion (app.$243 million) fixed-rate Samurai notes, which will mature in 2012. “The rating reflects Aflac’s extremely strong and stable earnings performance, extremely strong liquidity, and very strong competitive position and capitalization,” stated S&P credit analyst Shellie Stoddard.

Standard & Poor’s Ratings Services said today that it maintained its “A-” long-term counterparty credit rating on Italy-based insurer Compagnia Assicuratrice Unipol SpA on CreditWatch with negative implications, where it was placed on March 16, 2007. The “BBB” long-term subordinated debt ratings on the insurer’s two rated hybrid equity issues also remain on CreditWatch with negative implications, where they were placed on Dec. 18, 2006. “The CreditWatch placements followed approval by Unipol’s board of directors of the group’s restructuring plan,” explained S&P credit analyst Paola Del Curatolo. According to the plan, Compagnia Assicuratrice Unipol SpA will become a pure holding company and will be renamed Unipol Gruppo Finanziario SpA. The long-term counterparty credit rating on Unipol remains on CreditWatch because the transition is not completed yet, as it currently awaits regulatory approval.

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