...Extremely Strong Risk-Adjusted Capital: Fitch Ratings views the statutory capitalization of Western & Southern Financial Group, Inc.'s (W&SFG) insurance subsidiaries as extremely strong with a combined RBC ratio of 484% as of June 30, 2014. Fitch expects the group's RBC ratio to remain above 450% in the near term. Consolidated operating leverage remains among the lowest in Fitch's universe at 5.2x. Low Financial Leverage: W&SFG's financial leverage remains low at 7.1% as of Sept. 30, 2014, which is Fitch's primary rationale for the narrow notching between the holding company Issuer Default Rating (IDR) and the insurance company Insurer Financial Strength (IFS) rating. Outstanding debt is held at the holding company and matures in approximately 20 years. Strong Interest Coverage: GAAP interest coverage is in line with rating expectations at 14.2x as of Sept. 30, 2014. Earnings have been stable despite the difficult environment due, in part, to active management of annuity crediting rates...
