Best Affirms Ratings of ACE European Group Limited

of UK-based ACE European Group Limited (AEGL), both with stable outlooks.

The ratings reflect AEGL’s excellent stand alone risk-adjusted capitalization, solid operating performance and excellent business profile,” said Best. The ratings also reflect the implicit support provided to AEGL by its parent company, Zurich-based ACE Limited and “AEGL’s importance within the ACE group, which benefits from a diversified global operation and a consistently favorable record of generating strong earnings and cash flows.

“AEGL continues to be of strategic significance to ACE as its main underwriting operation in the United Kingdom and continental Europe. In addition, AEGL receives significant reinsurance support from ACE group affiliates.”

Best indicated that it expects AEGL “to maintain excellent stand-alone risk-adjusted capitalization in 2012, supported by solid retained earnings. In both 2010 and 2011, shareholders’ funds increased by over 6 percent in spite of dividends paid following the company’s strong operating performance in the previous year.”

However, Best also pointed out that “market conditions continue to be challenging, and AEGL is currently expecting to report a lower technical result in 2012 than the

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European Commission Approves ING Restructuring; Opens New Probe

May 14, 2012Email ThisPrintNewslettersTweetArticleCommentsThe European Commission on Friday approved a restructuring plan for Dutch bank and insurer ING made during the financial crisis as compatible with the European Union’s internal market, but also opened an investigation into amendments to the plan.

Friday’s approval followed a court ruling in March that the Commission had failed to show that extra aid granted to the Dutch financial group gave it an advantage over rivals.

The Luxembourg-based General Court, Europe’s second-highest, annulled part of a 2009 decision by the European Commission, which demanded a restructuring plan from ING, including asset sales, before it could approve the aid.

After the original Commission decision, ING said it had had to make hefty concessions, including selling its online bank ING Direct USA in February, no longer being a price leader in some markets and not making acquisitions.

However, the Commission’s approval was based on a restructuring plan submitted in 2009, and since that time, the Dutch state and ING have notified the Commission of amendments to the plan, the Commission said in a statement. The Commission on Friday opened an in-depth investigation into these changes.

“The Commission considers that the complexity of the issues justifies an in-depth analysis,” the EU executive said.

At the same time the Commission said it has appealed the General Court’s judgment to the Court of Justice of the European Union, Europe’s highest court.

The original Commission judgment followed the granting to ING by the Dutch State in the autumn of 2008 recapitalization aid of

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