KUALA LUMPUR, Sept 30 (Bernama) -- AM Best has affirmed the Financial Strength Rating of B++ (good) and the Long-Term Issuer Credit Rating of ‘bbb’ of Beneficial Insurance Limited (BIL) New Zealand.
The stable outlook of these credit ratings reflect BIL’s balance sheet strength, which AM Best categorised as adequate, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
BIL’s balance sheet strength is underpinned by risk-adjusted capitalisation that is categorised as strongest, as measured by Best’s Capital Adequacy Ratio, according to a statement.
BIL has a track record of strong operating performance, as demonstrated by a five-year average return on equity ratio of 25.2 per cent (fiscal years 2015 to 2019). Profitability over this period has been driven by favourable underwriting performance and stable investment returns.
AM Best expects strong underwriting performance by BIL over the medium term, supported by continued low loss ratios and from gradually improving expense ratios, as the company executes its business growth plan and benefits from economies of scale.
BIL is a niche insurer that focuses on pet insurance in New Zealand. The company’s limited business profile assessment is largely a result of its small-scale operations, as well as product and geographical concentration in New Zealand.
AM Best is a global credit rating agency and information provider with exclusive focus on the insurance industry. More information at www.ambest.com.
-- BERNAMA
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