MOODY'S AFFIRMS A2 INSURANCE FINANCIAL STRENGTH RATING OF ROYAL & SUN ALLIANCE LENDERS MORTGAGE INSURANCE LIMITED
Moody's Investors Service affirmed the A2 insurance financial strength rating of Royal & Sun Alliance Lenders Mortgage Insurance Limited. The outlook for the rating is stable. The action follows the placing by Moody's of the insurance financial strength rating of the company's ultimate United Kingdom parent, Royal & Sun Alliance Insurance Group Plc, under review for possible downgrade.
The rating agency said that Royal & Sun Alliance Lenders Mortgage Insurance Limited has a substantial share of the lenders mortgage insurance market in Australia, and is a significant contributor to the group's profits from its strategically important Asia Pacific region. The increased insurance claims that the ultimate parent is currently facing are likely to have very limited negative impact on the group's strategic focus in the region, and a commensurately negligible effect on the company 's own credit profile.
Moody's noted that the geographical spread and international strategy of the Royal & Sun Alliance group would continue to be closely monitored for their potential effect on individual subsidiaries' credit standing, as would those of other diversified financial groups, given the present political and economic uncertainties.
The following rating was affirmed:
Royal & Sun Alliance Lenders Mortgage Insurance Limited, insurance financial strength rating of A2. The outlook for the rating is stable.
Royal & Sun Alliance Lenders Mortgage Insurance Limited is a mortgage insurer that provides primary mortgage insurance on single-family dwellings in Australia and New Zealand. Based in Chatswood, New South Wales, Royal & Sun Alliance Lenders Mortgage Insurance Limited had assets of A$295 million, and equity of A$134 million, at 31 December 2000.
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