...Size Limits Rating Level: Fitch Ratings views life insurer ATLANTICLUX Lebensversicherung S.A.'s (ATL) small size (with shareholders' equity of only EUR27.9m) as a constraint on the rating. In Fitch's opinion, smaller insurers are less likely to be able to absorb the impact of operational risks. This factor limits ATL's ratings to the `BBB' category. Strong Earnings: Fitch views ATL's bottom-line profitability as strong. Despite its cost- intensive distribution channels ATL achieved a return on assets (ROA) of 1.6% in 2014 (2013: 1.1%) and has continually reported ROAs above 0.5% since 2007. Low-Insurance-Risk Business: 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 ATL's policies. ATL reinsures the vast majority of its mortality and disability risks. Strong Capitalisation: ATL's...
