Fitch Affirms Standard Insurance Limited at ‘AA(zaf)’, Withdraws Ratings

(The following statement was released by the rating agency) LONDON, May 04 (Fitch) Fitch Ratings has affirmed Standard Insurance Limited’s (SIL) National Insurer Financial Strength (IFS) rating at ‘AA(zaf)’. The Outlook is Stable. SIL is the non-life bancassurance operating subsidiary of Standard Bank Group Limited (Standard Bank; AA(zaf)/Stable). The agency has simultaneously withdrawn SIL’s rating. Fitch has withdrawn the rating as SIL has chosen to stop participating in the rating process. Therefore, Fitch will no longer have sufficient information to maintain the rating. Accordingly, Fitch will no longer provide ratings or analytical coverage for SIL. KEY RATING DRIVERS SIL’s rating is raised by one notch from its standalone credit profile to align with Standard Bank’s rating. Fitch believes that Standard Bank would provide support to its subsidiary if needed, given SIL’s high level of integration within the bank, its shared branding, alignment with the group’s strategy and profitability. From a standalone perspective, SIL’s credit strengths are its strong capitalisation, conservative investment strategy and consistent profitability. Its small size and lack of business diversification are credit weaknesses. SIL’s capitalisation is strong, in Fitch’s opinion. At FYE15, SIL’s capital adequacy requirement cover on a solvency assessment & management interim measures basis was 2.5x (2014: 2.3x), ahead of its peer-group median of 1.8x (end-2015). Overall profitability remained sound in 2015, supported by favourable underwriting experience and disciplined cost control. SIL is a small player in the South African insurance market with a market share by gross written premium of less than 2%. Its business mix is highly concentrated, with homeowners’ building insurance accounting for at least 66% of net earned premium. RATING SENSITIVITIES Not applicable Contact: Primary Analyst Willem Loots Director +44 20 3530 1808 Fitch Ratings Limited 30 North Colonnade London E14 5GN Secondary Analyst Harish Gohil Managing Director +44 20 3530 1257 Committee Chairperson Chris Waterman Managing Director +44 20 3530 1168 Media Relations: Athos Larkou, London, Tel: +44 203 530 1549, Email: Additional information is available on Applicable Criteria Insurance Rating Methodology (pub. 16 Sep 2015) here Additional Disclosures Solicitation Status here Endorsement Policy here ail=31 ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY’S PUBLIC WEBSITE ‘WWW.FITCHRATINGS.COM’. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH’S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE ‘CODE OF CONDUCT’ SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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