CONTACTS:
FOR IMMEDIATE RELEASE
SINGAPORE - SEPTEMBER 04, 2015 12:13 PM (EDT)
A.M. Best has affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of "a-" of nib nz limited (nib nz) (New Zealand). The outlook for both ratings is stable.
The ratings mainly reflect nib nz's adequate balance sheet strength and continued favorable operating performance. The ratings also take into consideration the company's strong risk management fundamentals, which partially contributed to the stable and favorable claim experience over time.
As of June 30, 2015, nib nz maintained a solvency ratio that was comfortably higher than its local regulatory requirement. In addition, the company's risk-based capitalization, as evaluated by Best's Capital Adequacy Ratio, continued to reflect its low product risk profile, moderate underwriting leverage and conservative investment mix.
Over the past five years, operating performance was favorable with a five-year operating ratio of 92%. Additionally, combined and operating ratios were generally better and less volatile than other health insurers operating in New Zealand.
The company is well-positioned for the current ratings. However, negative rating actions may occur if incorrect underwriting decisions and inadequate product pricing lead to underwriting losses, or if there is a deviation from the capital management plan communicated to A.M. Best.
Ratings are communicated to rated entities prior to publication, and unless stated otherwise, the ratings were not amended subsequent to that communication.
This press release relates to rating(s) that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best's Ratings & Criteria Center.
A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.