Fitch assigns Condor Allgemeine, Condor Leben, and Optima Versicherung IFS 'A'

Fitch Ratings has assigned German insurer Condor Allgemeine Versicherungs-AG (CA), Condor Lebensversicherungs-AG (CL) and Optima Versicherungs-AG (Optima Vers.) Insurer Financial Strength (IFS) ratings of 'A'. Fitch views CA, CL and Optima Vers. as core entities -of Condor group. The Outlooks for all the ratings are Stable. At the same time, the agency has assigned the companies the Fitch Financial-Strength-Seal, which is only given to financially strong insurers.
"The ratings reflect the very strong capitalisation and very strong reserving of the Condor group and its entities, as well as their profit-focussed underwriting discipline," says Christos Stavrianidis, Analyst in Fitch's Insurance Group. "Additionally, CL has recorded a good lapse ratio and has established an above average fund for future appropriation. Partly offsetting these positive rating factors are the relatively weak new business growth and the relatively small size of the group, as well as the above-average cost ratios," says Tim Ockenga, Director in Fitch's Insurance Group.
The Condor insurance group is owned by the German conglomerate Oetker, which had 22,000 employees and total revenues of EUR7.1bn in 2006 (excluding the financial service business). CA is the holding company of the Condor insurance companies. The group derives its insurance business solely though the independent financial adviser channel. The Condor group offers both commercial and private life and non-life insurance products. The group also includes the Optima Pensionskasse AG, a provider of unzillmerised pension products.
CA generated gross written premiums (GWP) of EUR88.9m in 2006 (2005: EUR92.2m) and has an above average (compared to the industry) exposure to the transport, fire and technical insurance lines. The company has a below average exposure to motor insurance. CA follows a strict profit-oriented underwriting policy, which resulted in a better than average combined ratio in 2006, partly supported by the run-off of very strong claims reserves.
CL, with GWP of EUR211.9m in 2006 (2005: EUR210.2m), is the largest entity of the Condor group. The life insurer has a strong capitalisation, as reflected by an above average capitalization ratio (defined to include the sum of equity and the fund for future appropriation). In addition, Fitch views CL's reserving to be very prudent, which reinforces the company's financial strength. With 4.0%, CL also has a better lapse ratio than the market. However, partly reflecting the company's strategy of providing high service levels, the overall expense ratio of 4.4% and acquisition cost ratio of 6.3% are both slightly above the market average.
Optima Vers. generated GWP of EUR27.1m in 2006 (2005: EUR26.8m). The insurer is almost entirely focussed on motor insurance, and due to low cost ratios, was able to achieve a very good combined ratio of 93.7% in 2006.
Fitch expects the Condor group to maintain its high financial strength and stable premiums across the group, as well as adequate new business in life insurance.

Fitch Ratings
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Fitch Ratings is a leading global full service rating agency committed to providing the
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Fitch is dual-headquartered in New York and London, has operating offices and joint ventures in more than 50 locations and covers entities in over 100 countries. In October 2006, Fitch established Derivative Fitch, a rating agency dedicated to providing ratings and a suite of comprehensive services for the CDO and credit derivatives markets. Fitch Training, a leading provider of analytical training for financial professionals is another wholly-owned subsidiary of Fitch.

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In Germany, Fitch Ratings has had an office in Frankfurt on Main since 1999. Currently, the Frankfurt office has a staff of over thirtyfive professionals.

This release was published on openPR.