KUALA LUMPUR, Feb 20 -- AM Best has affirmed the Financial Strength Rating of A (excellent) and the Long-Term Issuer Credit Rating of ‘a’ of FMG Insurance Limited (FMGIL) New Zealand.
With a stable Credit Ratings outlook, the ratings reflect FMGIL’s balance sheet strength, which AM Best categorised as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
In addition, the ratings factor in a neutral holding company impact from the company’s 100 per cent ownership by Farmers’ Mutual Group (FMG), according to a statement.
FMGIL’s balance sheet strength is underpinned by its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), which AM Best expects to remain at the strongest level over the medium term.
AM Best views FMGIL’s operating performance as adequate, with the company having generated a five-year average return-on-equity ratio of five per cent (fiscal-years 2015-2019).
Operating results over this period were driven by investment operations, with the company’s five-year average combined ratio having been at a near breakeven position, largely driven by the impact of weather and earthquake events in fiscal-years 2016 and 2017.
FMGIL continues to exhibit a strong direct distribution business model, supported by its close relationships with customers and ownership by FMG, which has a long history and strong brand recognition in New Zealand’s rural sector.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. More details at www.ambest.com.
AM Best views FMGIL’s operating performance as adequate, with the company having generated a five-year average return-on-equity ratio of five per cent (fiscal-years 2015-2019).
Operating results over this period were driven by investment operations, with the company’s five-year average combined ratio having been at a near breakeven position, largely driven by the impact of weather and earthquake events in fiscal-years 2016 and 2017.
FMGIL continues to exhibit a strong direct distribution business model, supported by its close relationships with customers and ownership by FMG, which has a long history and strong brand recognition in New Zealand’s rural sector.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. More details at www.ambest.com.
-- BERNAMA
No comments:
Post a Comment