Fitch affirms Friends Provident

Fitch Ratings said it affirmed Friends Provident Life and Pensions Ltd.'s insurer financial strength rating at A+ and issuer default rating at A. The agency also affirmed Friends Provident plc's issuer default rating and step-up tier-one insurance capital securities guaranteed by Friends Provident at A-.

The outlook is stable.

The affirmation follows details released by Friends Provident's of the proposed merger with Resolution plc, which has an issuer default rating of A-.

In Fitch's view, downward pressures from integration risks of the transaction are offset by the enhanced operating scale and business position of the new entity, sound strategic fit of the two businesses and an expectation of continued strong capitalization and solid operating performance.

The combined entities would benefit from the greater diversification of their businesses, the agency said.

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