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The change in outlook is explained by the strong growth of its financial performance in 2023, well above expectations, and its leading competitive position in the Belgian insurance market, thanks to the balanced business mix and its phygital distribution strategy.

Fitch also highlights :

• Ethias' very strong capitalization
• its excellent regulatory solvency ratio (SII) of 190%
• its stable financial leverage ratio
• its very good reserving practices
• its excellent Non-Life profitability
• a Life margin above expectations
• its low exposure to interest-rate risk. 

Fitch expects Ethias to maintain strong earnings in 2024 and 2025. 

Click here for Fitch's Press Release

• Ethias’s Rating reflects the group’s very strong capitalisation, moderate leverage, strong operating performance and strong company profile.
• Fitch’s assessment of Ethias’s capitalisation is driven by the group’s very strong Solvency II (S2) ratio of 170% at end-2022.
• Fitch also underlines Ethias's strong business profile, strong reserving and low exposure to interest rate risk.

Click here for Fitch's Press Release

• Ethias’s rating reflects the group’s very strong capitalisation, low leverage, strong operating performance and a strong company profile.
• The Positive Outlook reflects Fitch’s view that Ethias is likely to consolidate its robust credit fundamentals over the next 12 to 24 months, with a combined ratio (CR) remaining below 95%, a return on equity (ROE) above 7%, as well as a capitalisation & leverage remaining at least very strong.
• Fitch’s assessment of Ethias’s capitalisation & leverage is driven by a Prism Factor-Based Capital Model (FBM) of ‘Extremely Strong’ at end-2021, unchanged from end-2020’s. The group’s Solvency II (SII) ratio was also very strong, at 178% at end-2021 (2020: 187%) but remains sensitive to a widening of government bond spreads. Its financial leverage ratio (FLR) was a low 17% at end-2021 (end-2020: 18%). Ethias’s capital and leverage measures compare favourably to that of similarly rated European peers.

Click here for Fitch's Press Release

• On June 3th 2021, Fitch Ratings has upgraded Ethias SA's (Ethias) Insurer Financial Strength (IFS) Rating to 'A' from 'A-' and Ethias' Issuer Default Rating (IDR) to 'A-' from 'BBB+'. The Outlooks are Positive. The upgrade reflects Fitch's view that Ethias has consolidated its very strong capitalisation, its low leverage and strong operating performance since it completed a multi-year action plan in 2018. The ratings actions also consider the resilience of these factors during the coronavirus pandemic. Ethias' ratings also reflect a strong business profile.
• The Positive Outlook reflects Fitch's view that the group could achieve a combined ratio sustainably below 95%, while maintaining its very strong capitalisation and low leverage over the next 12 to 24 months. 

• On May 19th 2020, Fitch Ratings affirmed Ethias's Insurer Financial Strength (IFS) Rating at 'A-' with a stable outlook. The rating actions are based on Fitch’s current assessment of the impact of the Coronavirus pandemic. The ratings primarily reflect Ethias's strong capitalization and leverage, good profitability and strong business profile. Fitch continues to view Ethias as strongly capitalized for its current rating, with financial capital ratios marginally weaker than those reported in 2019 results. The Fitch rating case analysis suggests manageable Covid-19 related claims and Fitch underlines that Ethias has a strong balance sheet liquidity position.
  
• In March 2020, after examining the macroeconomic situation and the prospects for many companies in the wake of the Covid-19 health crisis, within the framework of its "event driven" rating committee, the agency took the decision to bring the ratings of a whole series of companies with a positive outlook to a stable outlook. In this context, the outlook of Ethias' "A-” rating therefore goes from positive to stable.
• On the 13 of august 2019, Fitch has revised Ethias’ Outlook to Positive from Stable. The Positive Outlook reflects Fitch's expectation that the company will maintain its strong capitalisation and financial leverage ratio (FLR) in 2019. The group has begun to build a track record of stability following the completion of a multi-year action plan that has resulted in a strengthening in capitalisation, financial flexibility and asset-and-liability risk management. 
• On the 22nd of January 2019, Fitch has upgraded Ethias S.A.'s Insurer Financial Strength (IFS) rating to A- from BBB+. The upgrade follows the full repayment of Vitrufin's debt on 16 January 2019 and the full disposal of Ethias's capital-intensive individual life portfolio in september 2018. In Fitch's view, these two achievements mark the completion of a multi-year action plan that has resulted in a strengthening in capitalisation, financial flexibility and asset and liability management risk.
• On the 12th of June 2018, Fitch has revised Ethias’ Outlook to Positive from Stable while affirming the Insurer Financial Strength (IFS) rating at BBB+ in order to reflects Fitch's view that the likely full repayment of Vitrufin debt and the full disposal of the insurer's capital-intensive individual life portfolio will lead to a strengthening in Ethias's capitalisation, profitability and financial flexibility.
• On the 27th of June 2017, Fitch has upgraded Ethias’ Insurer Financial Strength (IFS) rating to BBB+ from BBB with stable outlook, in order to reflect the completion of Ethias’s recovery plan in May 2017 and resulting strengthening of capital profile and reduced exposure to interest rate risk.
• On the 10th of January 2017, Fitch affirmed Ethias' Insurer Financial Strength rating at BBB with positive outlook, in order to reflect the success of the Switch VI operation that enables the company to improve its capital position and to reduce its sensitivity to interest rate changes.

On 24 April 2023, Ethias announced the launch of a cash tender offer for its outstanding dated subordinated notes due 2026. As at the expiration deadline, €116,500,000 in aggregate principal amount of the Notes were validly tendered for purchase pursuant to the Offer. After this transaction, an aggregate principal amount of €286,200,000 of the dated subordinated notes due 2026 remains outstanding.

Concurrently with the Offer, Ethias also issued a series of new tier two callable fixed rate dated subordinated notes due 2033 in an aggregate amount of €250,000,000.

On 29 June 2015, Ethias SA announced its intention to invite the holders of its EUR 250,000,000 Fixed/Floating Rate Subordinated Undated Bonds (ISIN : BE0930906947) to offer for exchange their existing notes for Euro-denominated 5% Dated Subordinated Notes due 2026 (ISIN : BE6279619330).

Existing notes in an aggregate principal amount of EUR 236,000,000 were offered for exchange by holders of existing notes pursuant to the exchange offer.

After the exercise of the cash exit discretion and of the cash rounding amount, new notes in an aggregate principal amount of EUR 231,900,000 were issued, at an issue price of 100%, by Ethias SA on the 14th of July 2015.

The links here below provide more information on this transaction:

On the 5th Of November 2015, Ethias SA issued, at an issue price of 80%, EUR 170,800,000 Dated Subordinated Notes due 2026 via a tap of its existing EUR 231,900,000 5.000% Dated Subordinated Notes which were issued by Ethias on 14 July 2015 in the framework of the exchange offer by Ethias on its outstanding EUR 250,000,000 Fixed/Floating Rate Subordinated Undated Bonds.

The additional notes are consolidated and form a single series immediately with the notes issued in July. Upon consolidation, the aggregate principal amount of the notes is EUR 402,700,000.

The links here below provide more information on this transaction: