KUALA LUMPUR, May 27 (Bernama) -- Global credit rating agency, AM Best has removed from under review with developing implications and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of ‘a-’ (Excellent) of nib nz insurance limited (nib nz insurance) New Zealand.
According to a statement, the outlook assigned to these Credit Ratings (ratings) is stable. Concurrently, AM Best has withdrawn the ratings as the company has requested to no longer participate in AM Best’s interactive rating process.
These rating actions follow the completed acquisition of 100 per cent ownership of Kiwi Insurance Limited (Kiwi Insurance) on April 29, 2022, by nib nz holdings limited (nib nz holdings).
The transaction, previously announced in November 2021, also includes the establishment of an exclusive relationship with Kiwibank Limited (Kiwibank), which will see the bank refer its retail customers to nib nz holdings for their life insurance needs. Following the transaction, Kiwi Insurance has been renamed as nib nz insurance.
The ratings reflect nib nz insurance’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
In addition, the ratings factor in a neutral impact from the company’s ultimate ownership by nib holdings limited (nib group), a health insurer listed on the Australian Stock Exchange (ASX) that provides health insurance in Australia and New Zealand.
nib nz insurance’s balance sheet strength assessment is underpinned by its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), which was at the strongest level as of fiscal year-end 2021 and is expected to remain at this level over the medium term.
This reflects the company’s moderate underwriting leverage and conservative investment allocation. Over the medium term, AM Best expects full earnings retention to support the company’s business initiatives.
Based on an assessment of the credit fundamentals of nib group, as well as consideration of the perceived strategic importance and integration of nib nz insurance to the group, no rating lift or drag has been applied to nib nz insurance’s ratings.
More details at www.ambest.com.
-- BERNAMA
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