Moody's commented that the restructuring program announced in November last year has made positive progress, with a number of small asset sales having been concluded successfully, planned expense reductions achieved on schedule, and the recent announcement of the imminent sale of the UK Healthcare and Assistance business. However, Moody's regards the IPO of the Australian business as vital and, along with the sale of RSUI in the USA, is at a crucial stage of progress. Successful outcomes of these two transactions would go some way towards moderating concerns about the group's capital position. Moody's would view negatively any significant difference between indicative prices and those achieved, or if the transactions were not to proceed.
Separately, Moody's announced today that it has withdrawn the Baa2 insurance financial strength ratings on three former members of the Royal & SunAlliance USA intercompany pool (the "RSA USA Pool"). The three companies involved, Design Professionals Insurance Company, EBI Indemnity Company and Employee Benefits Insurance Company, have been merged into their affiliate, Security Insurance Company of Hartford, which continues to maintain a 10% participation in the RSA USA Pool (insurance financial strength ratings of intercompany pool members at Baa2, on review for possible downgrade).