KUALA LUMPUR, Feb 5 -- Global credit rating agency, AM Best has affirmed the Financial Strength Rating of A (excellent) and the Long-Term Issuer Credit Rating of ‘a’ for Cigna Life Insurance New Zealand Limited (CLINZ) New Zealand.
The outlook of these Credit Ratings is stable, according to a statement.
These rating actions follow completion of a portfolio transfer on Jan 31, whereby CLINZ acquired 100 per cent of the assets and liabilities of OnePath Life (NZ) Limited (OPL).
Cigna Corporation (Cigna group) previously purchased OPL from ANZ Bank New Zealand Limited in November 2018. The recent portfolio transfer represents the final phase of the acquisition process, combining the business operations of CLINZ and OPL.
The ratings reflect CLINZ’s balance sheet strength, which AM Best categorised as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
CLINZ’s balance sheet strength is underpinned by its risk-adjusted capitalisation, which AM Best expects to remain at the strongest level over the medium term, as measured by Best’s Capital Adequacy Ratio.
The company has a track record of reporting positive underwriting and investment results, with operating performance metrics expected to remain at an adequate level over the medium term.
AM Best expects some near-term expenses to arise from integration and transaction costs emanating from the OPL transfer, over the medium term the increased scale of the combined businesses is expected to support lower expense ratios.
More details at www.ambest.com.
-- BERNAMA
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