"The upgrade reflects our view of Ahleia's continued very strong capital and earnings, which has led us to revise upward our financial risk profile assessment for the insurer to strong from moderately strong. As we continue to assess its business risk profile as satisfactory, we have revised upward Ahleia's anchor to 'a-'. Other factors remain neutral to the rating.
"In our opinion, Ahleia has extremely strong risk-based capital adequacy that is resilient to the potential volatility of its investment portfolio, which leans heavily toward equity funds. At the end of 2013, Ahleia's capital base was
"We assess Ahleia's risk position as moderate, with very high investment leverage. As of
"We assess Ahleia's business risk profile as satisfactory, which reflects our view of the intermediate industry risk the insurer faces in
"Our assessments of management and governance and enterprise risk management are neutral to the rating. We see Ahleia's liquidity as exceptional, and we anticipate that this will be maintained.
"The stable outlook reflects our view that our assessments of Ahleia's business and financial risk profiles are unlikely to change over the next two years. We anticipate that capital adequacy will remain extremely strong and resilient to any earnings pressure, and we expect Ahleia's technical profitability to remain high. We also anticipate that its risk position will remain moderate, but this assessment is sensitive to any changes in the asset mix in Ahleia's investment portfolio.
"We view a downgrade as currently unlikely, given the strength and sustainability of Ahleia's capital and earnings. However, we could consider lowering the ratings if we see any weakening of the insurer's risk position, through changes to the asset mix, or if its earnings are materially lower than we expect."
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