Fitch affirms Ageas Holding and operating companies

Fitch has also affirmed the long- and short-term IDRs of the Ageas holding companies: Ageas SA/NV, Ageas NV and Ageas Insurance International NV (which merged with Ageas Insurance NV and Ageas Utrecht NV).

The agency has withdrawn the ratings of Brussels Liquidation Holding, Ageas Utrecht NV and Ageas Insurance NV as these entities no longer exist. The Outlooks on the IFS rating and the Long-term IDRs are Stable.

Fitch has also affirmed Ageas Insurance Company (Asia) (AICA) IFS ratings and long-term IDRs, both with stable outlooks.

The agency said AG Insurance's ratings continue to reflect its strong capital adequacy, leading business position in Belgium and healthy profitability.

These strengths are offset by the company's lack of geographical diversification, it added.

Fitch added the ratings of the Ageas holding companies continue to take into account the fact that they have more cash than needed to repay their debt.

Nevertheless, Fitch believes that the holding companies face litigation risk as a consequence of the restructuring of the Ageas group, which is reflected by their IDRs being two notches lower than that of AG Insurance.