Fitch upgrades Gerling-Konzern

Fitch Ratings said it upgraded Gerling-Konzern Lebensversicherungs AG's insurer financial strength rating to A- from BB+, issuer default rating to BBB+ from BB and subordinated bond issue to BBB from BB-.

All ratings have been removed from Rating Watch positive, and a stable outlook has been assigned to the insurer financial strength rating and the issuer default rating.

Fitch also awarded the company a Fitch Financial-Strength-Seal, which is only given to financially strong insurers.

The upgrades follow the completion of the acquisition of the Gerling group by the financially stronger and larger Talanx group and reflects Fitch's views that the acquisition by Talanx is positive for Gerling-Konzern's own financial strength and overall business position.

While Fitch acknowledges the potentially positive effect the acquisition has on Talanx's business diversification, Fitch said there are significant execution risks associated with the integration of the Gerling-Konzern group in Talanx.

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