KUALA LUMPUR, March 14 (Bernama) -- A.M. Best has assigned a
financial strength rating of B++ (good) and a long-term issuer credit rating of
'bbb' to Momentum Life Ltd (Momentum Life) New Zealand, and the outlook
assigned to these ratings is stable.
The ratings reflect Momentum Life´s balance sheet strength, which A.M. Best categorised as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
A.M. Best expects the company to maintain a level of on-balance sheet capital during its first five years of operations to support its projected business activities at all four Best´s Capital Adequacy Ratio (BCAR) confidence intervals.
Although the company lacks a demonstrated track record of stability in BCAR scores, the uncertainty is mitigated partially by the company reinsuring a very high percentage of its risk premiums, holding a large amount of additional capital, and maintaining a low-risk, highly liquid asset structure.
Momentum Life will focus initially on low-risk products such as guaranteed acceptance funeral insurance coverage and underwritten lump-sum life insurance products also will start to offer higher-risk products, such as income protection covers, in the third year of insurance operations.
Given the expected size and complexity of the company, A.M. Best considers Momentum Life´s ERM framework to be appropriate, and its risk management capabilities to be well-aligned with its risk profile.
Momentum Life is a newly formed insurance operation in New Zealand. Its ultimate parent, BlueInc Group Pty Limited (BlueInc Group) Australia, a financial services group specialising in direct life insurance distribution and administration in Australia and New Zealand.
-- BERNAMA
The ratings reflect Momentum Life´s balance sheet strength, which A.M. Best categorised as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
A.M. Best expects the company to maintain a level of on-balance sheet capital during its first five years of operations to support its projected business activities at all four Best´s Capital Adequacy Ratio (BCAR) confidence intervals.
Although the company lacks a demonstrated track record of stability in BCAR scores, the uncertainty is mitigated partially by the company reinsuring a very high percentage of its risk premiums, holding a large amount of additional capital, and maintaining a low-risk, highly liquid asset structure.
Momentum Life will focus initially on low-risk products such as guaranteed acceptance funeral insurance coverage and underwritten lump-sum life insurance products also will start to offer higher-risk products, such as income protection covers, in the third year of insurance operations.
Given the expected size and complexity of the company, A.M. Best considers Momentum Life´s ERM framework to be appropriate, and its risk management capabilities to be well-aligned with its risk profile.
Momentum Life is a newly formed insurance operation in New Zealand. Its ultimate parent, BlueInc Group Pty Limited (BlueInc Group) Australia, a financial services group specialising in direct life insurance distribution and administration in Australia and New Zealand.
-- BERNAMA
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