OREANDA-NEWS. Fitch Ratings has withdrawn Sterling Insurance Co Ltd's (SICL) and Sterling Life Ltd's (SLL) Insurer Financial Strength (IFS) ratings. The companies are the underwriting members of the UK-based Sterling Insurance Group Limited (together referred to as Sterling). The ratings were maintained at 'BBB+' Rating Watch Positive at the time of withdrawal.

KEY RATING DRIVERS
Fitch has withdrawn the ratings as Sterling has decided to stop participating in the rating process. Therefore, the agency will no longer have sufficient information to maintain the ratings on Sterling. Accordingly, Fitch will no longer provide ratings or analytical coverage for Sterling.

The RWP reflects Fitch's expectation that Sterling's financial profile will benefit from being part of a significantly larger and financially stronger group, following the acquisition of Sterling by Covea, the French mutual insurance group. Sterling's standalone financial profile is sound, supported by adequate risk-adjusted capitalisation and robust technical profitability. At end-2014, Sterling reported consolidated net income of GBP3.9m (2013: GBP6.1m). The agency's calculated combined ratio in 2014 was 96.4% (2013: 96.7%).

Fitch expects that the acquisition of Sterling by Covea will allow the two groups to implement business and organisational co-operation with synergies expected over the medium term.

Covea is a leading French mutual insurance group, with EUR15.6bn of gross written premiums in 2014. It is one of the largest insurers in France, providing a wide range of life and non-life insurance products.