Fitch Ratings has affirmed Standard Life Assurance Limited’s (SLAL) Insurer Financial Strength (IFS) rating at ‘A+’ and Long-term Issuer Default Rating (IDR) at ‘A’. Fitch has also affirmed Standard Life plc’s (Standard Life) Long-term IDR at ‘A-‘.
Standard Life is the top holding company for the Standard Life group. In addition, the agency has affirmed Standard Life’s perpetual subordinated notes, which benefit from a guarantee given by SLAL at ‘BBB+’ and the GBP500m subordinated bond maturing in 2042 at ‘BBB-‘.. The Outlooks on the Long-term IDRs and IFS ratings are Stable. At the same time Fitch has withdrawn all ratings on the Standard Life group.
The affirmation of Standard Life’s ratings reflects the insurer’s maintained strong competitive position within the UK pension market, its strong capitalisation and profitability as well as its modest financial leverage. In 2012, Standard Life’s pre-tax operating profit rose to GBP900m (2011: GBP544m), benefiting from improved profitability of its UK, Canadian and Asian insurance operations as well as an increased contribution from Standard Life Investments.
Fitch has decided to discontinue the ratings, which are uncompensated.
