OREANDA-NEWS. Fitch Ratings has today revised Progress-Garant Insurance Company's ("PG") Outlook to Positive from Stable.

At the same time the agency has affirmed PG's International Insurer Financial Strength ("IFS") rating at 'B-' (B minus) and its National IFS rating at 'BB+(rus)'.

The Positive Outlook reflects Fitch's expectation that PG's business mix will stabilise and the success of underwriting controls will be demonstrated. It also reflects the expectation of ongoing capital strengthening resulting from retained earnings and a partial revaluation of real-estate assets.

PG's ratings reflect the company's good operating performance, increased portfolio diversification and committed management team.

Offsetting factors include low, although improved, capitalization by international standards, the challenges in adhering to well-defined risk selection as the portfolio develops, a limited franchise and high industry risks.