NEW ZEALAND MEDICAL PROFESSIONALS LIMITED HAS STABLE RATINGS OUTLOOK - AM BEST

 KUALA LUMPUR, March 26 (Bernama) -- AM Best has affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of ‘bbb-’ of New Zealand Medical Professionals Limited (NZMPL) New Zealand, making stable outlook of the ratings.

The ratings reflect NZMPL’s balance sheet strength, which AM Best assesses as adequate, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

NZMPL’s balance sheet strength is underpinned by its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio, which remains at the strongest level.

In addition, the balance sheet assessment is supported by the company’s reinsurance programme placed with a highly rated counterparty, which protects NZMPL against large single losses and aggregate exposure.

Based on a statement, AM Best also considers the company to have limited financial flexibility.

The global credit rating agency also views NZMPL’s operating performance as adequate, as demonstrated by a five-year average return-on-equity ratio of 10.1 per cent (fiscal-years 2016-2020).

Prospectively, AM Best expects the company to report positive earnings over the medium term, despite near-term challenging investment landscape.

AM Best views NZMPL’s business profile as limited. The company is a small and niche insurer in New Zealand focused on providing medical indemnity insurance to medical practitioners and health professionals.

 NZMPL’s access to new business is supported by its affiliation with the New Zealand Resident Doctors’ Association. More details on the rating at www.ambest.com

-- BERNAMA