Fitch affirms Prudential

Fitch Ratings said it affirmed Prudential plc's long-term issuer default rating at A+ and senior unsecured debt at A.

The agency also affirmed Prudential Assurance Co. Ltd.'s insurer financial strength rating at AA.

The outlooks on all of the group's long-term issuer default ratings and insurer financial strength ratings are stable.

The ratings reflect Prudential's continued strong and resilient capital position, operational scale and strong business position in each of its key markets, the United Kingdom, the United States and Asia, Fitch said.

Prudential has strong cash generation and a strategy focused on high-margin products with short pay-back periods and a profitable asset-management business, the agency said.

Partially offsetting these positive factors is the company's relatively high exposure to credit risk, longevity risk and adverse policyholder behavior risk, Fitch said. This exposure includes the rapidly increasing variable annuity business in the United States over the past three years, the agency said.

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