HIH Rating Review Australian-based insurance group HIH Winterthur International Holdings Limited has announced (24 September 1998) details of a bid by the company to acquire ownership of FAI Insurances Limited. The Adler family of Australia, who are the largest shareholders in FAI, have already sold a 14.3 percent holding to HIH and there is an agreement by the family also to sell their remaining 16 percent to HIH. Both HIH and FAI have head offices located in Australia and have major operations in New Zealand, Australia and other countries overseas. A spokesperson for HIH said that successful acquisition by HIH would make the HIH/FAI Group Australia's largest general insurer, with $A2.67 billion ($NZ3.15 billion approx.) in gross written premiums and a diversified range of brands and product distribution capabilities. Following HIH's announcement to the Australian Stock Exchange, ratings agency Standard & Poor's revised the financial strength rating of HIH to ``A (Credit Watch Negative)''. At the same time the agency noted that the rating reflected the potential diluting impact that could result from HIH's absorbing FAI, a lower-rated entity of substantial size. Standard & Poor's also noted that the proposed acquisition, if completed, should enhance HIH's business profile, with potential increase in operating performance. The rating applies to the following New Zealand entities: HIH Casualty and General Insurance (NZ) Limited. CIC Insurance Limited (New Zealand branch). CMG Insurance Company (NZ) Limited. The rating scale is available for inspection at any office of the above companies. This notice is made, pursuant to the Insurance Companies (Ratings and Inspections) Act 1994.