Fitch Ratings service has announced that they have updated the Quantitative Insurer Financial Strength (Q-IFS) ratings assigned to life insurance companies in the U.S., resulting in 203 rating affirmations, 24 rating upgrades, and 15 rating downgrades. Fitch has also assigned initial Q-IFS ratings to an additional 12 U.S. life insurance companies. The update is based on statutory financial information through yearend 2007, and reflected generally modest improvement in balance sheet fundamentals and relatively stable earnings performance despite increased investment losses.

'The deterioration in the credit markets in the second half of 2007 created challenges for U.S. Life Insurers. Nevertheless, the industry continues to generate consistent earnings, driving capital growth and supporting ratings levels. Life insurer ratings have been relatively stable in the past few years as seen in the high percentage of rating affirmations, and rating upgrades that outpaced rating downgrades this year,' said Douglas Meyer, Managing Director & U.S. Life Insurance Sector Head for Fitch Ratings.

For further information on Fitch's Q-IFS ratings, Fitch has published a special report titled 'Quantitative Insurer Financial Strength Ratings Methodology: U.S. Life Insurers', which is available on the Fitch web site www.fitchratings.com and can be found in the Criteria Reports section on the Sector marked 'Insurance' under 'Financial Institutions'. The report provides an overview of the Q-IFS rating program and the rating model, a discussion of the limitations regarding the use of the Q-IFS ratings, and a review of the rating scale and definitions. SOURCE: Fitch Ratings NEW YORK, Jun 27, 2008 (BUSINESS WIRE).

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