...Very Strong Capital: Fitch Ratings estimates M&G Plc (M&G)'s Prism Factor-Based Model (Prism FBM) score as `Extremely Strong' at end-2018. This score w as derived on a pro-forma basis after making adjustments for various intra-group transfers and gives credit for a degree of subordinated debt capital as part of the demerger of M&G from Prudential Plc. On a Fitch- calculated basis, w hich fully credits the surplus w ith-profit funds, Prudential Assurance Company Limited (PAC)'s Solvency II (S2) ratio w as 199% at end-2018. Leverage in Line w ith Ratings: Fitch estimates M&G's financial leverage ratio (FLR) to be around 15% on a pro-forma basis follow ing the full separation of the group and subordinated debt restructuring. M&G has taken on GBP3.2 billion debt at the point of demerger on 21 October 2019. Favourable Business Profile: Fitch ranks M&G's business profile as favourable w ithin the UK life insurance sector and, given this ranking, w e score its business profile at `aa-' under our...
