S&P places Tryggingamiðstöðin on CreditWatch


Standard & Poor's Rating Services has decided to place Tryggingamiðstöðin hf.
and its subsidiary, Nemi Forsikring ASA in Norway, on a CreditWatch with
negative implications. 

	This action by Standard and Poor's reflects its concerns over the increasing
levels of debt leverage in FL Group which is the parent company of
Tryggingamiðstöðin hf. In the announcement from Standard & Poor's it is stated;
that uncertainty regarding FL's ability to service its debt obligations could
have consequences for the capitalization of TM and NEMI. Standard & Poor's
expects to resolve the CreditWatch status well before the end of June 2008,
subject to further discussion with the management of FL and TM. At this stage,
Standard & Poor's believes the ratings could be lowered by one notch or more. 

For further information contact Sigurður Viðarsson, President and CEO of
Tryggingamiðstöðin, tel: +354 5152000. 

The announcement from Standard & Poor's:

Insurers Tryggingamidstödin And NEMI Forsikring On Watch Neg Over Parent's High
Debt Levels 
 
 Primary Credit Analyst: 
 Peter McClean, London (44) 20-7176-7075;
peter_mcclean@standardandpoors.com 
Secondary Credit Analyst: 
 Rowena Potter, London (44) 20-7176-7070;
rowena_potter@standardandpoors.com 
Additional Contact: 
 Insurance Ratings Europe;
InsuranceInteractive_Europe@standardandpoors.com 
 Publication date: 06-Jun-08, 12:12:16 EST 
Reprinted from RatingsDirect  
 
 • Current Ratings

 LONDON (Standard & Poor's) June 6, 2008--Standard & Poor's Ratings Services 
said today that it placed its 'BBB' long-term counterparty credit and insurer 
financial strength ratings on Iceland-based insurer Tryggingamidstödin hf. 
(TM) and its subsidiary Norway-based non-life insurer NEMI Forsikring ASA on 
CreditWatch with negative implications.
     The CreditWatch placement reflects Standard & Poor's concerns over the 
increasing levels of debt leverage in the parent company, Iceland-based 
investment holding company FL Group (not rated). Uncertainty regarding FL's 
ability to service its debt obligations could have consequences for the 
capitalization of TM and NEMI. Standard & Poor's expects to resolve the 
CreditWatch status well before the end of June 2008, subject to further 
discussion with the management of FL and TM. At this stage, Standard & Poor's 
believes the ratings could be lowered by one notch or more.
       Ratings information is available to subscribers of RatingsDirect, the 
real-time Web-based source for Standard & Poor's credit ratings, research, and 
risk analysis, at www.ratingsdirect.com. It can also be found on Standard & 
Poor's public Web site at www.standardandpoors.com; select your preferred 
country or region, then Ratings in the left navigation bar, followed by Credit 
Ratings Search. Alternatively, call one of the following Standard & Poor's 
numbers: Client Support Europe (44) 20-7176-7176; London Press Office Hotline 
(44) 20-7176-3605; Paris (33) 1-4420-6708; Frankfurt (49) 69-33-999-225; 
Stockholm (46) 8-440-5914; or Moscow (7) 495-783-4017. Members of the media 
may also contact the European Press Office via e-mail on: 
media_europe@standardandpoors.com.