Risk monitoring by third parties

The Generali Group risk profile, considered as a set of assessments regarding the level of overall exposure to various risks, is monitored by the Supervisory Authorities of the countries where the Group operates. The process of complying to the system of prudential supervision Solvency II implies a more significant involvement of the main Supervisory Authorities of the European countries where the Group operates.

The main rating agencies perform periodic assessments of the Group’s financial stability by expressing their opinion on its ability to fulfill its obligations.

The evaluation is performed on the basis of several factors including financial and economic data, the Group's competitive position in markets where it operates and the strategies developed and implemented by the management.

Following the actions undertaken on some European sovereigns, including Italy’s, main rating agencies have revised the rating assigned to the Group, while confirming its financial stability, which benefits from its competitive position, geographical and distribution diversification as well as flexible life product characteristics, which serve to partially insulate the Group somewhat from stress related to the sovereign debt.

It is worth noting that Generali Group rating is confirmed by two notches higher than that assigned to the Italian sovereign debt.

The current rating and outlook assigned to Assicurazioni Generali by the major agencies are the following:

Rating agency 2011
                                                                                                         Rating Outlook
Standard & Poor's A Stable
Fitch A- Negative
AM Best A Under review
Moody's A1 Negative

In December 2011 Standard and Poor's placed the rating on General under credit watch, together with other European insurance groups. This condition has been resolved in early 2012, and the ratings of the Group was lowered from AA-to A with stable outlook, confirming the strong fundamentals of the Group’s business in terms of competitive position, operating performance and Enterprise Risk Management.
Moody's also reduced its rating from Aa3 to A1 General in February 2012. The outlook (negative) is in line with that of Italy.