Who said Australian insurance operations needed to hang on to their foreign parents’ apron-strings to get a decent rating? Not any more. Promina CEO Mike Wilkins has just had some very welcome news to cap off a successful float: his general insurance operations have been upgraded by Standard & Poor’s (S&P).

S&P boosted the ratings of Promina’s general insurance subsidiaries from A- to A following the successful completion of the group’s float and its separation from its unhappy UK parent.

Ratings director Michael Vine said the fact that Promina has successfully raised nearly $1.7 billion and has been well supported by the market so far made it essential to upgrade the ratings. “The strong ratings reflect Promina’s solid business fundamentals, geographic and product diversity, and well-recognised franchise, which are supported by a strong capital structure and supportive reinsurance arrangements.”

The rating upgrades apply to Royal & SunAlliance Insurance Australia and Royal & SunAlliance Insurance (NZ), as well as NZ Promina subsidiaries AA Insurance, Royal & SunAlliance Accident Insurance, and Royal & SunAlliance Liability Insurance.

Promina’s decision to discontinue the business of its subsidiary Royal & SunAlliance Lenders Mortgage Insurance (RSALMI) has also prompted S&P’s to lower the ratings of RSALMI from A+ to A-.

Mr Vine says the adjustment comes after Promina’s decision to cease underwriting new LMI policies. Promina has agreed to continue to underpin the group’s rating during the run-off period “through explicit support mechanisms”.