The 'A-' long-term counterparty credit and insurer financial strength ratings on Denmark-based Tryg Forsikring A/S (Tryg) and Norway-based Vesta Forsikring AS (Vesta), core entities of the TrygVesta group (TVG), are based on TVG's strong competitive position in Scandinavia and the enhanced profitability and reducing risk profile resulting from positive management action. Offsetting this is TVG's poor operating performance from 2000-2002 and its impact on capitalization levels. TVG has a strong competitive position as a leading player in both the Danish and Norwegian non-life insurance markets. The group maintains its leading position through a strong and reasonably diversified distribution strategy. The group's diversity is a key factor in what are, ultimately, concentrated markets. TVG is using its significant market power to
