On Nov. 17, 2006, Standard&Poor's Ratings Services placed its 'A' long-term counterparty credit and insurer financial strength ratings on Italian insurer Società Cattolica di Assicurazione (Cattolica) on CreditWatch with negative implications. The CreditWatch placement reflects concerns about Banco Popolare di Verona e Novara SCRL's (BPVN; A/Watch Neg/A-1) notice of cancellation of the shareholders' pact concerning BPVN's life insurance unit, BPV Vita SpA, and of its exclusive distribution agreement of life products of the Cattolica group. The loss of the life business deriving from the joint venture with BPVN would reduce by one-third the total contribution of Cattolica's life business, and thus increase business concentration. In addition, concerns arise from the uncertainty relative to the revision of the strategy
