...Low-Risk Business Approach: Life insurer ATLANTICLUX Lebensversicherung S.A. (ATL) has a risk-averse business approach, with a focus on unit-linked (UL) insurance policies. ATL bears limited direct investment risk, as capital market losses are predominantly borne by policyholders or external parties that provide guarantees offered within ATLs policies. ATL has reinsured the vast majority of its mortality and disability risks. Strong Capitalisation: Fitch Ratings views ATLs capitalisation as strong, based on the agencys risk-based capital assessment. ATLs capitalisation has proved resilient to volatile capital markets, due to its business model. At end-2013 ATL had a very strong regulatory solvency ratio of 214%, up from 178% at end-2012. Strong Earnings: Fitch views ATLs bottom-line profitability as strong. Despite its cost- intensive distribution channels ATL achieved a return on assets (ROA) of 1.08% in 2013 (2012: 0.56%) and has continually reported ROAs above 0.5% since 2007. Positive...
