Fitch cut Sanlam Life Insurance view to negative

Fitch Ratings said it changed the outlooks on Sanlam Life Insurance Ltd.'s national insurer financial strength and national long-term ratings to negative from stable. The outlook on the national long-term ratings of Sanlam Ltd., the parent of Sanlam Life and the ultimate holding company of the Sanlam group, also has been changed to negative from stable.

This primarily reflects concern over potential further weakening in earnings and deterioration in capitalization due to volatility in investment markets and the current challenging and uncertain economic climate, Fitch said.

Fitch also said it affirmed Sanlam Life's national insurer financial strength rating at AA+(zaf) and national long-term rating at AA(zaf). Its national short-term rating is affirmed at F1+(zaf) and the company's subordinated debt of ZAR2 billion is affirmed at AA-(zaf).

Fitch also said it affirmed Sanlam's national long-term rating at AA-(zaf). The rating of Santam Ltd., a core general insurance subsidiary of Sanlam, has been affirmed with a national insurer financial strength rating at AA+(zaf) and its outlook has been changed to negative from stable.

The ratings reflect the Sanlam group's solid capital position, strong and diversified business position within the South African financial services market and resilient operating performance, the agency said.

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