OREANDA-NEWS. Fitch Ratings has affirmed Germany-based life insurer VOLKSWOHL BUND LEBENSVERSICHERUNG a.G.'s (VBL) Insurer Financial Strength (IFS) Rating at 'A'. The Outlook is Negative.

The rating reflects VBL's strong market position within the independent financial advisor and sales organisation markets, solid capitalisation, and diversified earnings. Negative rating drivers are the insurer's large asset-liability duration mismatch and a difficult operating environment for German life insurers.

The Negative Outlook reflects our opinion that upcoming expenses for the additional mathematical reserve required by the German regulator (Zinszusatzreserve) will harm the ability of VBL to build capital in line with its growth.