Fitch affirms Delphi Financial

Fitch Ratings said it affirmed Delphi Financial Group, Inc.'s issuer default rating at BBB+, its 8% senior notes due 2033 at BBB and its 7.376% junior subordinated notes due 2067 at BBB-.

The outlook is stable.

The agency said Delphi Financial's ratings reflect solid profitability across the company's business lines. Financial leverage was modest for the rating category, while capitalization at both life and property/casualty operating companies were consistent with the rating category.

Balanced against these strengths are risks inherent in difficult product markets, specifically, subsidiary Reliance Standard Life Insurance Co.'s product concentration in disability and spread-based products, which Fitch believes have comparatively lower credit quality characteristics than traditional insurance products, and subsidiary Safety National Casualty Corp.'s concentrated product focus in excess workers compensation insurance, which Fitch believes presents unique reserving challenges given the product's long-duration reserves.

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