...Size Limits Rating Level: Fitch Ratings regards life insurer ATLANTICLUX Lebensversicherung S.A.'s (ATL) small size, with total assets of only EUR750m, as a constraint on the ratings. In Fitch's opinion, smaller insurers are less likely to be able to absorb the impact of operational risks. This limits ATL's ratings to the `BBB' category. Strong Capitalisation: ATL's capitalisation is 'extremely strong' according to Fitch's Prism factor-based capital model. The insurer's capitalisation has proved resilient to volatile capital markets in recent years, due to its business model. At end-2015 ATL had a `very strong' regulatory Solvency I ratio of 271% (end-2014: 258%). Fitch expects ATL's Solvency II margin to be much lower, but to remain well above 125% without transitional measures. Strong Earnings: Fitch views ATL's bottom-line profitability as strong. Despite its cost- intensive distribution channels ATL achieved a return on assets of 1.0% in 2015 (2014: 1.5%) and has continually reported...
