...Extremely Strong 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 526% as of Dec. 31, 2015. 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 5.3x. Exceptionally Low Leverage: W&SFG's financial leverage remains low at 7% as of Dec. 31, 2015, 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. W&SFG's cash interest coverage is extremely strong at 30x as of Dec. 31, 2015, due to solid statutory dividend capacity and significant levels of holding company cash and liquid assets. Stable Operating Performance: Earnings have been relatively stable, as fee income and earnings from limited partnerships somewhat offset spread compression....
