Promina Group Limited (Promina) announced today that Standard & Poor's Ratings services have revised the rating outlook on Promina to positive from stable. Promina's 'A-' long-term counterparty credit rating was also affirmed. At the same time, the long-term 'A' insurer financial strength and counterparty credit ratings on Vero Insurance Ltd and Vero Insurance New Zealand Ltd (including its rated subsidiaries of AA Insurance Ltd, Vero Accident Insurance Ltd, and Vero Liability Insurance Ltd) were affirmed, and their rating outlooks have also moved to positive.

In publishing the revised outlook, Standard & Poor's noted that the outlook revision to positive reflected the strong earnings momentum exhibited by the Group and its underlying financial and capital strength.

Standard & Poor's further stated that, however, it did not move Promina to a higher credit rating, as the strong earnings momentum had been achieved in a relatively short trading period since the initial public offering (IPO) in May 2003. Standard & Poor's said that it expected Promina could migrate to a higher credit standing, dependent on consistent earnings, franchise maintenance, and a continued strong capital position, which Standard & Poor's will assess post the first-half results of 2004.

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