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 as good. With total premiums of €3.8 billion at year-end 2011, Cattolica ranked sixth within Italian P/C groups and ninth in life insurance. Under our base-case scenario we expect total premiums to fall by 15% in
