Milano Assicurazioni SpA : Press Release - Milano Assicurazioni S.P.A.: Standard & Poor's improves Rating to BBB from BB. Creditwatch removed and negative Outlook Assigned. Milano Assicurazioni defined core to the Unipol Group. (Dimensione: 693 KB) »

PRESS RELEASE

MILANO ASSICURAZIONI S.p.A.: STANDARD & POOR'S IMPROVES RATING TO BBB FROM BB CREDITWATCH REMOVED AND NEGATIVE OUTLOOK ASSIGNED MILANO ASSICURAZIONI DEFINED CORE TO THE UNIPOL GROUP Bologna, December 14, 2012. The rating agency Standard & Poor's today improved the rating of Milano Assicurazioni S.p.A. to "BBB" from "BB" and removed the Creditwatch while assigning a negative Outlook.

The upward revision follows the progress made in the integration with the Unipol Group and the definition as a "core" entity from the previous "non­strategically important" within the Unipol Group.

The negative Outlook reflects the consideration by the rating agency of potential risks in the execution of the integration.

Press Office Stefano Genovese Claudia Galassi

Tel. [phone]

Investor Relations Giancarlo Lana Floriana Amari

Tel. [phone]

Tel. [phone] [e-mail]

AD Hoc Communication Advisor

Sara Balzarotti

Mob. [phone]

Pietro Cavalletti

Mob. [phone]

MILANO ASSICURAZIONI S.p.A. Sede Legale e Direzione

20161 Milano - Via Senigallia, 18/2

Tel. [phone] - Fax [phone] www.milass.it

Capitale Sociale € 373.682.600,42 int. vers. - Numero di iscrizione al Registro delle Imprese di Milano, Codice Fiscale e Partita I.V.A. 00957670151 - Impresa autorizzata all'esercizio delle assicurazioni (art. 65

R.D.L. 29-4-1923 n. 966) - Iscritta alla Sez. I dell'Albo Imprese presso l'Isvap al numero 1.00010

Società appartenente al gruppo assicurativo Fondiaria-SAI, iscritto all'albo dei gruppi assicurativi al n. 030 Direzione e coordinamento FONDIARIA-SAI S.p.A.

Research Update:

Fondiaria-SAI And Milano Assicurazioni Ratings Raised On Assessment As Core Companies In Enlarged Unipol Group

Analytical Group Contact:

Insurance Ratings Europe; [e-mail]

Table Of Contents

Overview Rating Action Rationale Outlook

Related Criteria And Research

Ratings List

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Research Update:

Fondiaria-SAI And Milano Assicurazioni Ratings Raised On Assessment As Core Companies In Enlarged Unipol Group

Overview

On Nov. 30, 2012, Milano Assicurazioni SpA shareholders appointed a new board of directors.
The successful alignment of Premafin Hp, Fondiaria-SAI SpA and Milano Assicurazioni's managements with that of Unipol indicates that Unipol is increasingly committed to supporting these entities in the future, in light of their planned merger with Unipol Assicurazioni SpA.
Therefore, we have revised the status of Fondiaria-SAI and Milano Assicurazioni within the Unipol group to core from nonstrategically important. As core companies of the Unipol group, we are raising to 'BBB' from 'BB' our ratings on Fondiaria-SAI and Milano Assicurazioni.
The negative outlook reflects that on the Unipol group's core operating entities, and our view that the merger carries significant execution risk and the Unipol group remains exposed to significant nonrecurring costs.

Rating Action

On Dec. 14, 2012, Standard & Poor's Ratings Services raised to 'BBB' from 'BB' its long-term counterparty credit and financial strength ratings on
Italy-based composite insurer Fondiaria-SAI SpA and its rated subsidiary
Milano Assicurazioni SpA.
At the same time, we have removed the ratings from CreditWatch with positive implications, where we originally placed them on Aug. 9, 2012.
The outlook on both entities is negative.

Rationale

The upgrade reflects our view that the alignment of the Premafin Hp, Fondiaria-SAI, and most recently Milano Assicurazioni management boards to that of the Unipol group indicates the Unipol group's increased commitment to supporting Fondiaria-SAI and Milano Assicurazioni until the merger, which is expected to be successfully executed in July 2013. It follows the affirmation of our 'BBB' ratings on Unipol (see "Unipol Ratings Off CreditWatch, Affirmed
On Lower Uncertainties On Planned Merger With Fondiaria-SAI; Outlook Negative," published today).
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Research Update: Fondiaria-SAI And Milano Assicurazioni Ratings Raised On Assessment As Core Companies In

Enlarged Unipol Group

Accordingly, we now regard Fondiaria-SAI and Milano Assicurazioni as core operating entities of the Unipol group.
Our opinion is based on the following factors:
Fondiaria-SAI and Milano Assicurazioni operate in lines of business and regions that are integral to the Unipol group's overall strategy.
The group plans to fully integrate these companies within the Unipol group.
Their senior group management mostly mirrors Unipol's group top management.
Together, they constitute over 50% of Unipol's group business and capital. Unipol has demonstrated a strong commitment through its €1.1 billion capital increase and by facilitating the recapitalization of the
Fondiaria-SAI group.
We consider that if the group were to dispose of these entities, it would seriously disrupt Unipol group's goals and strategy.

Outlook

The negative outlook reflects that on Unipol and therefore our view that the merger carries significant execution risk and the Unipol group remains exposed to significant nonrecurring costs.
We could lower the ratings if nonrecurring costs and difficult macroeconomic conditions were to weaken the Unipol group's capitalization, underlying operating performance, and capacity to service its financial obligations. We could lower the ratings if we ceased to regard the companies as core.
We could consider revising the outlook to stable if the Unipol group were to demonstrate sustainable improvements in underlying operating performance, reduced potential for nonrecurring items, and improving financial flexibility.

Related Criteria And Research

Unipol Ratings Off CreditWatch, Affirmed On Lower Uncertainties On
Planned Merger With Fondiaria-SAI; Outlook Negative, Dec. 14, 2012
Unipol Assicurazioni And UGF Ratings Still On Watch Neg On Uncertainties
Due To Planned Merger With Fondiaria-SAI, Nov. 9, 2012
Principles Of Credit Ratings, Feb. 16, 2011
Refined Methodology And Assumptions For Analyzing Insurer Capital
Adequacy Using The Risk-Based Insurance Capital Model, June 7, 2010
Use Of CreditWatch And Outlooks, Sept. 14, 2009
Group Methodology, April 22, 2009
Interactive Ratings Methodology, April 22, 2009
Hybrid Capital Handbook: September 2008 Edition, Sept. 15, 2008
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Research Update: Fondiaria-SAI And Milano Assicurazioni Ratings Raised On Assessment As Core Companies In

Enlarged Unipol Group

Ratings List

Upgraded; Outlook Action
Fondiaria-SAI SpA
Milano Assicurazioni SpA
To From
Counterparty Credit Rating BBB/Negative/-- BB/Watch Pos/-- Financial Strength Rating BBB/Negative/-- BB/Watch Pos/--
Complete ratings information is available to subscribers of RatingsDirect on the Global Credit Portal at www.globalcreditportal.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com. Use the Ratings search box located in the left column. Alternatively, call one of the following Standard & Poor's numbers: Client Support Europe (44) 20-7176-7176; London Press Office (44)
20-7176-3605; Paris (33) 1-4420-6708; Frankfurt (49) 69-33-999-225; Stockholm
(46) 8-440-5914; or Moscow 7 [phone].
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