Standard & Poor's has changed its outlook on The North of England Protecting & Indemnity Association Ltd (NEPIA)from stable to positive and affirmed NEPIA's single'A'-minus ratings.
These ratings reflect mutual insurance company NEPIA's strong capital adequacy, financial flexibility and its historically strong growth in free reserves.
The outlook is based on the expectation that operating performance will improve slightly following the 25 per cent general increase in calls for the year ending 2003. Further industry-wide increases are likely for the year ending 2004.
Although NEPIA's business position is considered to be good and improving, its size and relative lack of business-line diversity partly detract from the rating.
