Fitch raises long-term outlook for insurer Fidelidade to ‘A’

The US ratings agency Fitch has raised the long-term rating of Portuguese insurer Fidelidade to ‘A’.

In a note sent to newsrooms, it highlighted the insurer’s solid profile, robust capitalisation, strong financial performance and profitability, as well as a portfolio of investments carrying less risk as among the reasons why it had upgraded the insurer.

After Fidelidade was privatised, the Chinese Fosun Group (FIL) through Long run Portugal, SGPS S.A. currently holds almost 85% of the company while the other 15% is held by State-owned bank Caixa-Geral de Depósitos, S.A (CGD).

In 1H 2024, the insurer posted a net income of €104 million, up 0.6% Year-on-Year, and consolidated 1H2024 Gross Written Premiums of €2.8Bn, a 5.9% YoY increase, underpinned by Portuguese Non-Life (+12.5%) and International life operations (+15.6%).

According to Fitch, the improvement in the insurer’s risk classification – which serves as a benchmark to investors when investing in a company – correlates to its “strong capacity” to “honour its financial obligations”.