CGNU's core operating companies have retained their AA rating, following CGNU's sale of Marlborough Underwriting Agency and departure from the London market (see page 13).

CGNU will keep its Standard & Poor's rating by selling its Lloyd's activities to Berkshire Hathaway and by buying £1bn in reinsurance protection from a Berkshire Hathaway company.

Its clean break from the US property and casualty business and the London market cost CGNU £1.7bn.

A Standard & Poor's spokesperson said the rating was based on its strong business position, capitalisation and its potential for higher earnings.