KUALA LUMPUR, March 4 (Bernama) -- AM Best has affirmed the Financial Strength Rating of A (excellent) and Long-Term Issuer Credit Rating of ‘a’ of BNZ Life Insurance Limited (BNZ Life) New Zealand, stressing that the outlook of these ratings is stable.
The ratings reflect BNZ Life’s balance sheet strength, which has been categorised as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.
In addition, the ratings factor is a neutral impact from the company’s ultimate ownership by National Australia Bank Limited (NAB).
According to a statement by the global insurance rating agency, BNZ Life’s balance sheet strength is underpinned by its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio, which is at the strongest level.
AM Best also viewed BNZ Life’s operating performance as strong, with the company having generated a five-year average return on equity ratio of 30 per cent (fiscal years 2014-2018).
The company also has a track record of favourable earnings driven by the strong underwriting performance of its in-force life business, coupled with stable investment returns.
BNZ Life also benefits from a level of risk management oversight and governance from the NAB group.
Prospectively, AM Best expects a robust pricing strategy and steady revenue growth to support the maintenance of the strong operating performance.
The company is a small to medium-sized insurer in New Zealand’s life insurance industry, with a market share of approximately five per cent based on 2018 gross written premiums. More details at www.ambest.com
-- BERNAMA
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