The ratings on Italy-based composite insurer Società Cattolica di Assicurazione reflect its strong competitive position, strong operating performance, and strong capitalization. These positive factors are partially offset by the group's dependence on third-party distribution for more than 60% of total gross premiums written (GPW). Cattolica is the sixth-largest insurer in Italy, and benefits from a sound bancassurance strategy for the distribution of life products and a well-recognized agency sales force for the distribution of property/casualty (P/C) products. The group maintains a low risk profile given its primary exposure to retail customers. The business mix is skewed toward life policies, which represented 70% of total premium income in the first nine months of 2005. The group has a strong operating performance
