Core operating entity of major insurance and banking group, Suncorp Group Ltd. Strong competitive position in its domestic general insurance markets Robust capital levels, underpinned by prudent reserving, reinsurance, and investment allocations Earnings volatility due to exposure to costs arising from natural peril events Challenging industry conditions, including pricing pressures and higher reinsurance costs The financial strength ratings on general insurer AAI Ltd. (formerly known as Vero Insurance Ltd.) are equalized with those on the core operating subsidiaries of Suncorp Group Ltd. (Suncorp, A/Stable/--; core operating entities rated A+/Stable/--), reflecting its core status to the group. We view the insurer as core because it is a key contributor to the group's earnings base, and is a fully integrated part of
