Insurer Financial Strength | A | Positive outlook |
Long-term Issuer Default Rating | A- | Positive outlook |
Subordinated Debt Rating | BBB |
Last review June 3h 2021
Last key dates
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Last full report
In its last full year report dated October 2020, Fitch recognizes the strong level of capitalisation of Ethias, its good profitability and the reduction of its duration gap.
Selected extracts from Key Rating Drivers :
“The group has begun to build a track record of stability following the completion of a multi-year action plan that has resulted in a strengthening in capitalization, financial flexibility and asset and liability risk management ”
“The ratings primarily reflect Ethias's strong capitalisation and leverage, good profitability and strong business profile.”
“Ethias’sPrism FBM score was at the upper end of the 'Very Strong' category at end 2018, well in excess of the ‘A’ benchmark.”
“Ethias’s FLR was stable at approximately 20% at end 2018.”
“Ethias reported a Solvency II capital ratio of 181% at end 2018, excluding transitional arrangements (end 2017 : 183%).”
“Fitch regards Ethias's profitability as good, driven by the non-life business. Net income return on equity (ROE) was 7.7% at end 2018 (2017: 6.7%). We expect Ethias to demonstrate sustained profitability in 2019 that would be more reflective of technical results, after having been affected by non recurring items related to the company’s restructuring”.
“Ethias has significantly reduced its exposure to interest rate risks resulting from historically high minimum guaranteed returns on retail life technical liabilities. The duration gap is now expected to remain below 1 year.”
RATING SENSITIVITIES
“The ratings could be upgraded if Ethias maintains a ‘very strong’ Prism FBM score and a stable FLR, while return on equity remains stable”. Fitch, August 2019 |
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The evolution of the rating of Ethias SA is the following:
Date | Insurer Financiel Strength (IFS) | Insurer Default Rating (IDR) | Outlooks |
03/06/2021 | A | A- | Positive outlook |
19/05/2020 | A- | BBB+ | Stable outlook |
19/03/2020 | A- | BBB+ | Stable outlook |
13/08/2019 | A- | BBB+ | Positive outlook |
22/01/2019 | A- | BBB+ | Stable outlook |
12/06/2018 | BBB+ | BBB | Positive outlook |
27/06/2017 | BBB+ | BBB | Stable outlook |
10/01/2017 | BBB | BBB- | Positive outlook |
The rating of subordinated debts is the following:
Issue date | Program | ISIN Code | Rating |
05/11/2015 | EUR 170.8M tap issue of dated subordinated notes due 2026 |
BE6279619330 | BBB |
14/07/2015 | EUR 231.9M fixed rate dated subordinated notes due 2026 | BE6279619330 | BBB |
20/12/2015 | EUR 14M fixed/floating rate subordinated undated bonds |
BE0930906947 | BBB |
Fitch press releases & annual reports:
Annual reports |
October 2020 |
September 2019 |
July 2018 |
July 2017 |
Press releases |
June 2021 |
May 2020 |
March 2020 |
August 2019 |
January 2019 |
June 2018 |
January 2018 |
June 2017 |
January 2017 |