Fitch Ratings has upgraded the ratings of Combined Insurance Company of America (CICA) and its New York subsidiary Combined Life Insurance Company of New York (CLICNY) to 'AA-' from 'A' following their purchase by Ace Ltd. from Aon Corporation for $2.56 billion. The rating outlook is stable.

Fitch's action is based on its view that the acquired entities are core operations to Ace's global operations. Fitch anticipates that CICA's and CLICNY's financial and business profile benefits being owned by a very strong owner with a long-term, global strategy centered on underwriting insurance risks.

The improved strategic position and affiliation with Ace more than offsets the reduction in capitalisation at CICA that has occurred with the sale.

CICA's reported statutory capital and surplus has declined from $934 million at year-end 2007 to a pro forma $426 million due a special one-time dividend to Aon and the sale of a former subsidiary, Sterling Life Insurance Company, to Munich Re.

Fitch anticipates that CICA and CLICNY will be able to complement Ace's international distribution capabilities and further expand its growing international operations.