International credit ratings agency Moody's has confirmed its ratings on Royal & SunAlliance following the insurer's announcement, earlier this week, that it had increased its reserves.
Moody's left R&SA's insurance financial strength rating at A1 and its subordinated debt rating at A3. It said all the ratings on R&SA's subsidiaries were also unchanged and their outlook remained stable.
The agency said although R&SA's move would have a severe impact on the company's earnings, it viewed it positively because it removed "a large element of uncertainty surrounding the adequacy of reserves ... and should lead to lower adverse charges in future".
