...Somewhat Weak Business Profile: Fitch Ratings regards life insurer FWU Life Insurance Lux S.A.'s (FWU Lux) business profile, with total assets of only EUR750 million, as a constraint on its ratings. This limits FWU Lux's ratings to the `BBB' category, based on our view that the ability of smaller insurers to absorb operational risk is limited. Very Strong Capitalisation: FWU Lux'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-2016, FWU Lux reported a Solvency II ratio of 146% (2015 regulatory Solvency I ratio: 271%). Fitch expects FWU Lux to maintain its Solvency II ratio in the range of 140%-150%. Off-Balance-Sheet Obligations: While FWU Lux has not issued debt, the company had reinsurance off-balance sheet obligations of EUR232 million at end-2016. For the vast majority of these obligations FWU Lux acts as the ultimate...
