Wednesday, 6 September 2017

A.M. BEST AFFIRMS CREDIT RATINGS OF NIB NZ LIMITED

SINGAPORE, Sept 5 (Bernama-BUSINESS WIRE) -- A.M. Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of nib nz limited (nib nz) (New Zealand). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect nib nz’s strong risk-adjusted capitalization and continued favorable operating performance. The company’s strong risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is due to its low product risk profile, conservative investment mix and favorable liquidity position. In addition, nib nz has a good performance track record, with an average operating ratio of approximately 91% over the past five years.

While positive rating actions are unlikely, negative rating actions may occur if inadequate product pricing leads to underwriting losses. Additionally, the ratings could be downgraded if there is material deterioration in the consolidated financial condition of nib nz’s ultimate parent, arising from a significant impairment of goodwill or underwriting losses.  

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