Ratings Recap: Scottish Re, Macau Ins., AEGON, Generali (Austria), Allianz (debt), Sinosure

Standard & Poor’s Ratings Services said that its rating and outlook on Scottish Re Group Ltd. (SCT; B+/Developing/–) “will not be affected by the company’s five-day delay in its second-quarter 2007 10Q filing for the period ended June 30, 2007. The delay is due to SCT’s comprehensive analysis of its statutory filings and the tax effects of its change-in-control and redomestication of a securitization.

A.M. Best Co. has affirmed the financial strength ratings (FSR) of “A” (Excellent) and the issuer credit ratings (ICR) of “a” of Macau Insurance Company Limited (MIC) and its
subsidiary, Macau Life Insurance Company Limited (MLIC). The outlook for all the ratings is stable. “The rating affirmations reflect MIC’s strong risk-based capitalization, well-established business position and liquid investment portfolio,” said Best. “The ratings also consider the continued distribution support from its banking affiliate and favorable economic conditions in Macau.”

Standard & Poor’s Ratings Services said today that its ratings and outlook on Netherlands-based insurer AEGON N.V. (AEGON; A+/Stable/A-1) and its ‘AA’ rated core operating subsidiaries are unaffected by the recently announced €1 billion ($1.37 billion) share buyback program (See related article).

Standard & Poor’s Ratings Services said today it assigned its ‘AA’ counterparty credit and insurer financial strength ratings to Austria-based Generali Versicherung AG (GV). In addition, it assigned its ‘A+’ counterparty credit and insurer financial strength ratings to Austria-based intermediate holding and internal reinsurance company Generali Holding Vienna AG (GHV); both with a stable outlook. “The ratings on GV reflect its core status to its Italy-based ultimate parent Assicurazioni Generali SpA (Generali; AA/Stable/–), the Austrian subgroup Generali Vienna Group (GVG)’s strong capitalization and competitive position in Austria, and strongly recovered profitability in recent years,” stated S&P credit analyst Ralf Bender.

Standard & Poor’s Ratings Services has raised to ‘A+’ from ‘A’ its long-term junior subordinated debt rating on the undated subordinated fixed-rate callable €800 million 5.375 percent bonds issued by Allianz Finance II B.V. and unconditionally and irrevocably guaranteed by Allianz SE (AZSE; AA/Stable/A-1+). The ‘A’ long-term junior subordinated debt rating on the callable perpetual junior subordinated €1.5 billion 5.5 percent bonds issued by AZSE remains unchanged. “The upgrade on the €800 million [$1.096 billion] securities issued by Allianz Finance II B.V. follows AZSE’s additional commitment to these securities, published today in the group’s interim report for the second quarter of 2007,” S&P noted.

Standard & Poor’s Ratings Services has assigned its ‘A’ long-term and ‘A-1’ short-term issuer credit ratings to China-based China Export & Credit Insurance Corp. (Sinosure) with a positive outlook. “The issuer credit ratings on Sinosure are aligned with those of the People’s Republic of China,” explained S&P credit analyst Kim Eng Tan. “This reflects the close support from the Chinese government and the important policy role played by Sinosure, a role that is unlikely to be undertaken by a commercial insurance company in an efficient manner.”