Fitch Ratings has affirmed KBC Insurance's 'AA' Insurer Financial Strength (IFS) and 'AA-' Issuer Default ratings. The outlooks are stable for both ratings.
KBC Insurance's ratings remains aligned with KBC Bank and KBC Group, reflecting the integration of banking and insurance activities within the group's operations both in Belgium and in a number of Central European countries. The ratings also take into account the increasing centralisation of the capital and risk management of the entities at the group level. The ratings consider the group's strong business positions, consistent strategy and quality of management, moderate risk profile and solid capital.
Fitch notes that both the insurance and banking operations have seen improvements in profitability during 2005, although risks remain in their growing exposure to Central European countries. Successful cooperation between the two entities is demonstrated by a fairly high cross-selling ratio, with an estimated 40% of the group's customers in Belgium having both banking and insurance products of KBC.
