Italian insurer Cattolica benefits from its leading position in the Italian market, well-diversified insurance portfolio, and widespread and diversified distribution network. The agreements signed with Banco Popolare in 2018 have strengthened Cattolica's position in the Italian life market, although this has weakened our view of its capital adequacy based on our risk-based model. Our ratings on Cattolica are capped by the sovereign credit rating on Italy. We are therefore affirming our 'BBB' ratings on the insurer. The negative outlook reflects that on Italy. Our assessment of Cattolica before sovereign risk remains unchanged at 'bbb+'. On July 26, 2019, S&P Global Ratings affirmed its 'BBB' long-term insurer financial strength and issuer credit ratings on Italian insurer Societa Cattolica di Assicurazione (Cattolica)
