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ZIG's capitalisation, as measured by Fitch's Prism factor-based model (FBM), remained 'Very Strong' based on 2019 financials. The result of the Swiss Solvency Test (SST) remained very strong at 198% as at 1 January 2020 (versus 221% a year ago). Since March 2020 ZIG has generally applied standard yield curves in its internal model, as allowed by FINMA, the Swiss regulator. Based on this its SST was 185% at end-1H20 and 193% at end-9M20. Its Fitch-calculated financial leverage was 22% at end-2019 (end-2018: 24%). However, during 1H20 ZIG's debt increased by USD2 billion to USD14 billion. Although almost half of the increase will be used to replace outstanding debt, Fitch expects the FLR to rise by end-2020, but to remain commensurate with the ratings. Fitch ranks ZIG's business profile as 'most favourable' compared with other large European insurance groups', based on its competitive positioning, its business risk profile, and diversification. Given this ranking, Fitch scores ZIG's business profile at 'aa+' under its credit factor scoring guidelines. ZIG is one of the largest composite insurance groups in Europe, with a strong global brand. The group has a major presence in many mature European markets and the US, and targets go to the website emerging markets as an area of growth.