View more on these topics

Fitch downgrades the Pru

Rating agency Fitch has downgraded Prudential’s long-term issuer default rating from AA to AA- and senior unsecured debt rating from AA- to A+ to reflect the firm’s exposure to volatile markets.

The agency affirmed the insurer financial strength ratings on Prudential Assurance Company at AA+ and on the group’s operations in the US at AA although the outlooks on IFS and IDR are Negative.

The downgrades reflects Fitch’s view that the firm’s exposure to volatile credit and investment market conditions is adversely affecting its investment results and earnings.

Fitch believes these pressures are more acute for the holding company ratings, reflecting their subordination relative to obligations of the operating companies.

Prudential previously benefited from a ratings uplift due to the group’s broad diversification but Fitch has reduced the uplift for diversification it gives in the light of the current global financial crisis and greater correlation of risks under stress.

The affirmation of PAC’s IFS rating reflects the continuation of the company’s very strong capital position despite recent pressures, its track record of with-profits investment returns in excess of general market performance and its strong risk management framework, particularly with respect to asset-liability management, according to Fitch.

But its negative outlook reflects its view that difficult conditions in global financial markets are likely to continue, which could cause higher than expected volatility in financial results and additional challenges in 2009.


Liontrust looks to regain its roar

Liontrust has made another rumble in the jungle recently with the announcement of the management quartet replacing star fund managers Jeremy Lang and William Pattisson.

Zurich Intl Life will pull back from EU

Zurich International Life is cutting its distribution in the European Union.It wrote to advisers recently, telling them that it will no longer accept new individual business from any client resident in the European Union (excluding the UK and Gibraltar), Norway, Iceland and Liechtenstein.Zurich International Solutions Europe, which was set up last year, will be used […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm