KUALA LUMPUR, Aug 26 (Bernama) -- AM Best has affirmed the Financial Strength Rating of A- (excellent) and the Long-Term Issuer Credit Rating of ‘a-’ of Foundation Life (NZ) Limited (FLNZ) in New Zealand.
With stable outlook on these credit ratings, it reflects FLNZ’s balance sheet strength, which AM Best has categorised as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The company’s balance sheet strength assessment is underpinned by risk-adjusted capitalisation that was at the strongest level as of fiscal year-end 2018, as measured by Best’s Capital Adequacy Ratio.
A partially offsetting balance sheet factor remains the company’s moderate-sized absolute capital base, which exposes capital adequacy to volatility in the event of stressed scenarios, including sudden and severe movements in interest rates.
FLNZ has a track record of reporting adequate operating performance, with post-tax profits reported in each of the past five years (fiscal years 2014 to 2018), according to a statement.
AM Best views the company’s business profile as limited, given its position as a run-off life insurer and its moderate scale of operations in New Zealand.
AM Best is a global rating agency and information provider with unique focus on the insurance industry. More information at www.ambest.com.
-- BERNAMA
-- BERNAMA
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