...Our ratings on Societß Cattolica di Assicurazione reflect Cattolica group's leading positions in both the life, and in particular, the non-life insurance markets. Cattolica is a long-established insurance group in Italy, and recent JVs with BBPM have strengthened its position in the Italian life market, further enhancing its well-diversified insurance portfolio and multi-distribution strategy. Cattolica has access to a spread-out insurance network including agencies and bank branches. Our ratings also reflect Cattolica's strong P/C technical results over the past six years. Sound underwriting and the wider stabilizing claims environment in Italy have driven a five-year average combined ratio of 95%. The overall return on equity has been limited, however, below 5% owing to the small operating results of its life and non-motor insurance portfolios as well as a series of assets impairments. Together with a high dividend pay-out and the recent acquisition and consolidation of JVs with BBPM,...
