OREANDA-NEWS. Fitch Ratings has assigned Bermuda-based Legal & General Reinsurance Company Limited (L&G Re) an Insurer Financial Strength (IFS) Rating of 'A+'. The Outlook is Stable.

KEY RATING DRIVERS

The rating reflects Fitch's view of L&G Re as a "very important" subsidiary of Legal & General Group PLC (L&G), as defined in Fitch's Insurance Ratings Methodology. This view is supported by the importance of L&G Re to the group's pensions de-risking strategy, and also reflects the shared management and branding with the group. The entity is rated one notch below the IFS Rating of 'AA-' on L&G's core operating entities, Legal & General Assurance Society Ltd, Banner Life Insurance Company and William Penn Life Insurance Company of New York.

RATING SENSITIVITIES

A change in the rating of L&G's core operating entities would lead to a corresponding change in the rating of L&G Re.

The establishment of a positive track record of executing longevity deals, and sustained growth in the entity could lead to L&G Re being considered 'core' to L&G, leading to an upgrade. A failure to enter into substantial deals may lead to the entity being considered only "important" or of "limited importance" to the group, leading to a downgrade.