...Less Favourable Business Profile: Fitch Ratings regards life insurer FWU Life Insurance Lux S.A.'s (FWU Lux) business profile, with total assets of only EUR766 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. However, we regard FWU Lux's business risk profile and diversification as moderate given its geographical diversification. Strong Capitalisation: FWU Lux's capitalisation is `Extremely Strong' according to Fitch's Prism factor-based capital model (Prism FBM). The insurer's capitalisation has proved resilient to volatile capital markets in recent years, due to its business model. FWU Lux reported a Solvency II ratio of 146% at end-2018 (end-2017: 147%). Fitch expects FWU Lux to maintain its Solvency II ratio in the range of 140%-150%. Off-Balance-Sheet Obligations: FWU Lux had off-balance-sheet reinsurance obligations of EUR155 million at end-2018,...
