Concentration in the Italian insurance sector, which displays higher industry and country risk than most western European insurance sectors. Strong competitive position with a growing market share, sustained by complementary distribution networks and good business diversification. Our expectation that capital adequacy will remain above the 'BBB' level reached at year-end 2014, sustained by a durable change in Cattolica's life insurance product mix, combined with more robust property/casualty (P/C) reserving practices and greater capital management discipline as Cattolica prepares for Solvency II implementation. Limited investments in high-risk assets, which benefits Cattolica's risk position. Adequate financial flexibility, supported by good coverage and leverage ratios, and recently proven ability to access debt markets. The rating on Cattolica is limited by the long-term sovereign
