...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 493% as of Dec. 31, 2014. Additionally, consolidated operating leverage remains among the lowest in Fitch's universe at 5.4x. Low Financial Leverage: W&SFG's financial leverage remains low at 6.9% at year-end 2014, which is Fitch's primary rationale for the narrow notching between the holding company Issuer Default Rating and the insurance company Insurer Financial Strength (IFS) rating. Outstanding debt is held at the holding company and matures in approximately 20 years. Strong Debt-Servicing Capabilities: GAAP interest coverage is in line with rating expectations at 13.8x for year-end 2014. The company's cash interest coverage is extremely strong at 36x at year-end 2014, reflecting solid statutory dividend capacity and significant levels of holding company cash and liquid...
