Good and well-diversified competitive position in the Italian insurance market. Good operating performance, sustained by a good track record in property/casualty insurance. Marginal capitalization because of increased country risk and volatile financial markets. Only satisfactory liquidity. The ratings on Italian composite insurer Società Cattolica di Assicurazione (Cattolica) reflect Standard&Poor's Ratings Services' view of the group's good competitive position supported by a well-diversified business mix and multidistribution channels, and its good operating performance sustained by a track record of satisfactory results in property/casualty (P/C) insurance. Partly offsetting these credit strengths are Cattolica's marginal capitalization--which has weakened on the back of increased credit risk in Italy and difficult financial markets--and its only satisfactory liquidity. We regard Cattolica's overall competitive position
