KUALA LUMPUR, Feb 4 (Bernama) – AM Best has affirmed the Financial Strength Rating of B (fair) and the Long-Term Issuer Credit Rating of ‘bb+’ of Pinnacle Life Ltd (Pinnacle Life), New Zealand.
The global rating agency focused on the insurance industry, in a statement, said the outlook of these ratings is stable.
AM Best said the ratings reflect the company’s balance sheet strength, which is categorised as adequate, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
The balance sheet strength is underpinned by its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio, which is at the strongest level.
“The company is having a high reliance on third-party reinsurance and a thin regulatory solvency margin when compared with other New Zealand life insurers.
“Pinnacle Life’s operating performance is viewed as adequate, having generated a five-year average return on equity ratio of 7.5 per cent (fiscal years 2014-2018),” AM Best added in the statement.
Prospectively, the agency expects controlled underwriting growth and a robust pricing strategy to support the maintenance of adequate operating performance over the medium term.
AM Best also viewed Pinnacle Life’s ERM framework as developed and its approach to managing key risks as appropriate given the size and complexity of the company. More details at www.ambest.com
-- BERNAMA
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