Credit ratings

Our credit ratings and the latest assessments from Standard & Poor's and Moody’s.

Credit ratings

  Financial strength Effective date Outlook
Standard & Poor's A 21 September 2015 Stable
Moody's A2 17 August 2015 Stable

Financial strength rating affirmed as stable on 21 September 2015. Standard & Poor's noted:

  • On 21 September 2015, Zurich Insurance Co. Ltd. announced that it would not make a formal offer for Royal & Sun Alliance Insurance PLC (RSA). 
  • As a result, we are removing our ratings on RSA from CreditWatch positive and affirming them.
  • The stable outlook reflects our expectation that RSA will continue to execute its strategic plan as a stand-alone group, following the falling-through of the possible acquisition by Zurich.

 

Moody's

Moody’s reaffirmed the A2 insurance financial strength rating of Royal & Sun Alliance Insurance plc and revised the outlook to stable on 17th August 2015.

Moody's affirmation of RSA's ratings “reflects the Group's strong competitive position in its key markets of the UK, Scandinavia, and Canada, its relatively well diversified business profile in terms of products, relatively conservative investment portfolio, and relatively low financial leverage”.

The change in outlook to stable from negative “reflects the good progress made to-date by the Group in improving its operating and underwriting performance, achieving cost reductions, and successfully disposing of non-core businesses. It also reflects Moody's view that: 1) there is now less execution risk around the Group's restructuring plan given the completed asset disposals and the planned efficiency and profit enhancement programmes are on track; 2) the Group will meet its cost reduction targets which will further improve profitability; 3) balance sheet and earnings volatility will likely reduce as a result of remedial actions; 4) the Group's good H1 15 results will help further restore shareholders' confidence. This is notwithstanding continued profitability headwinds in the form of the low investment yield environment, challenging market conditions and ongoing restructuring costs”. More information about Moody's ratings

Codan

  Financial Strength Effective from
Standard & Poor's A 28 February 2014
Moody's A2 3 December 2008

Royal and SunAlliance Company of Canada

  Financial Strength Effective from
Standard & Poor's A 28 February 2014
Moody's Not rated  

RSA Insurance Ireland Limited

  Financial Strength Effective from
Standard & Poor's A- 10 June 2014
Moody's Not rated   

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