S&P Lowers Rtgs on CGU France and MMA; On Watch Neg.
PARIS--(BUSINESS WIRE)--Standard & Poor's
July 6, 2001--Standard & Poor's today lowered to single-'A' from double-'A' its counterparty Counterparty
The other participant, including intermediaries, in a swap or contract. credit and insurer An individual or company who, through a contractual agreement, undertakes to compensate specified losses, liability, or damages incurred by another individual.
An insurer is frequently an insurance company and is also known as an underwriter. financial strength ratings on Abeille Assurances and its insurer financial strength rating on CGU CGU Conditions Générales d'Utilisation (French)
CGU Claremont Graduate University (Claremont, CA)
CGU Chang Gung University (Taiwan)
CGU Canadian Geophysical Union Courtage, the French property/casualty operations of U.K.-based insurer CGNU CGNU Crazy Go Nuts University (Homestar Runner)
CGNU Commercial Union, General Accident and Norwich Union (insurance group, renamed Aviva) PLC. The ratings on both these entities were also placed on CreditWatch with negative implications. At the same time, Standard & Poor's placed on CreditWatch with negative implications its double-'A' counterparty credit and insurer financial strength ratings on Abeille Vie, CGNU's main life insurance operating entity in France, and its single-'A'-minus counterparty credit and insurer financial strength ratings on French mutual group Les Mutuelles du Mans Assurances IARD IARD Investment Adviser Registration Depository
IARD Incendie, Accidents et Risques Divers (French: property and casualty insurance)
IARD Immediate Action Rapid Deployment (police tactic) (MMA (Microcomputer Managers Association, Inc.) A membership organization with chapters throughout the U.S. that was devoted to educating personnel responsible for personal computers. It disbanded in 1996.
Mma - A fast Mathematica-like system, in Allegro CL by R. Fateman, 1991. ) and 51%-owned reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. operation Le Mans Re.
The rating actions follow the confirmation by CGNU that it has entered preliminary discussions with MMA to establish the basis of a partnership that would reinforce the position of CGNU in life insurance and asset management in France and the position of MMA in domestic property/casualty insurance. The downgrades of Abeille Assurances and CGU Courtage reflect Standard & Poor's assessment of a change in the strategic importance of these two companies to the CGNU group. If the current talks lead to transferring these two businesses to MMA, these ratings could be further reduced as a result of MMA's weaker profile. The negative CreditWatch status of Abeille Vie reflects the uncertain impact on its capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. , although its business position in France would be strengthened given the CGNU group's ambitions to develop its European life insurance businesses.
MMA's negative CreditWatch status also reflects the potential negative impact of the transfer of CGNU's French property/casualty businesses, as well as the increased earnings volatility coming from CGU Courtage's commercial business at a time when MMA's operating performance is recovering from low levels.
The CGNU companies in France together form one of the top 10 players in the domestic insurance market, with EUR EUR
In currencies, this is the abbreviation for the Euro.
The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 4.9 billion of premium income in 2000, of which Abeille Assurances and CGU Courtage represented EUR1.32 billion combined.
MMA ranks fifth in the French property/casualty insurance market, with EUR2.3 billion of nonlife premium income in 2000, while MMA Vie reported EUR1 billion of turnover.
Standard & Poor's will resolve the CreditWatch status of all the companies when full details of the transaction -- including funding -- are made available. --CreditWire.
RATINGS LOWERED AND PLACED ON CREDITWATCH WITH NEGATIVE IMPLICATIONS To From Abeille Assurances Counterparty credit rating A AA Financial strength rating A AA CGU Courtage Financial strength rating A AA RATINGS PLACED ON CREDITWATCH WITH NEGATIVE IMPLICATIONS Abeille Vie Counterparty credit rating AA Financial strength rating AA Les Mutuelles du Mans Assurances IARD Counterparty credit rating A- Financial strength rating A- Le Mans Re Counterparty credit rating A- Financial strength rating A-