‘A+’ for Alte Leipziger Versicherung

ALV is the non-life subsidiary of the German mutual life insurer Alte Leipziger Lebensversicherung auf Gegenseitigkeit (ALL). ALL is the holding company of the Alte Leipziger insurance group (ALG).

The rating reflects ALV's strategic importance within ALG. Fitch views ALV as core to ALL. By applying Fitch's group rating methodology, ALV's rating is aligned with ALL's rating.

Fitch's view is based on ALG's core strategy to provide life, non-life and health insurance. ALV's products form an integral part of ALG's product portfolio, and administration, distribution systems and staff are shared. ALV enables ALG's tied agent network to offer full insurance solutions to customers.

Fitch expects that ALG would suffer in terms of underwriting capabilities, if the non-life segment did not form part of the group's overall product offering. In addition, ALG has shown its willingness to support ALV by strengthening its claims reserves in the legal expense line over recent years.

Key rating drivers for ALV's rating are its strategic importance within ALG and the fact that any positive or negative change to ALL's rating would result in a change in ALV's rating.