Fitch Affirms La Mondiale's Insurer Financial Strength Rtg At 'A+'.Business Editors PARIS Paris, in Greek mythology Paris or Alexander, in Greek mythology, son of Priam and Hecuba and brother of Hector. Because it was prophesied that he would cause the destruction of Troy, Paris was abandoned on Mt. & LONDON--(BUSINESS WIRE)--Aug. 13, 2002 Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. , the international rating agency, has today affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. the 'A+' Insurer Financial Strength (IFS) Rating of La Mondiale, the French mutual life insurance company. The Rating Outlook is Stable. Fitch has also affirmed the 'A-' long-term rating assigned to La Mondiale's EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 100 million subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". due 20 March 2022. La Mondiale's ratings continue to reflect the group's strong franchise in the specialist fields of individual and group retirement products in France, the quality and conservatism of its management, and its sound financial position. Fitch also recognises La Mondiale's high quality investment portfolios, stable and below industry average lapse (language) LAPSE - A single assignment language for the Manchester dataflow machine. ["A Single Assignment Language for Data Flow Computing", J.R.W. Glauert, M.Sc Diss, Victoria U Manchester, 1978]. ratios, and tight expense control. Financial solidity so·lid·i·ty n. 1. The condition or property of being solid. 2. Soundness of mind, moral character, or finances. Noun 1. is demonstrated by the group's strong but declining capital base (1.43x minimum requirement excluding unrealised gains but including subordinated debt, and 2.9x when including unrealised gains). During 2001, La Mondiale experienced a 12% decline in premiums written mainly due to the drop in demand for unit linked saving products. Unit linked premium represented 41% of the group's total premiums of EUR2.9bn vs. 62% in 2000. Yet assets at book value grew by 6% over the same period and La Mondiale's market share stabilised at around 3%, placing it in the top 10 providers of French life & benefits products. Fitch believes that the group will continue to benefit from its expertise in securing 'partnership' marketing agreements from non-affiliated institutions and intermediaries, and from its ongoing innovative product development. Agreements recently concluded with MACIF and AG2R are likely to generate additional further cross-selling revenues in future. Given a slower growth in demand for life insurance in France, Fitch expects La Mondiale to continue to grow but at a slower pace than in previous years. Fitch also expects the group's capitalisation to remain close to its current level, and for its management to continue exercising stringent controls on expenses. Formed in 1905, La Mondiale is a mutual company providing life insurance products via three key business units: 'Experts' (salaried agents), 'Entreprises' (sales to corporate clients) and 'Partenaires' (partnership distribution agreements with intermediaries specialised in high net worth individuals). The group has become a market leader in 'Madelin' retirement products (designed for the self-employed, and benefiting from significant tax advantages for policyholders) where it ranks third in France and in group pension where it ranks second. La Mondiale's profitability is in line with that of the industry. The group has reorganised Adj. 1. reorganised - organized again; "a reorganized business" reorganized organized - formed into a structured or coherent whole the management, training and remuneration REMUNERATION. Reward; recompense; salary. Dig. 17, 1, 7. of its sales force -- a move which Fitch believes will increase revenues in future. |
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