Saturday 24 March 2018

Outlook Of Partners Life Ltd New Zealand Now Positive - A.M. Best

KUALA LUMPUR, March 23 (Bernama) -- A.M. Best has revised the outlook to positive from stable and affirmed the financial strength rating of B++ (good) and the long-term issuer credit rating of 'bbb+' of Partners Life Ltd (Partners Life) New Zealand.

The ratings reflect Partners Life's balance sheet strength, which A.M. Best categorised as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).

Partners Life continues to grow rapidly through the financial adviser channel, with the capital required for writing new business still significantly exceeding the cash flows generated out of its in-force business, which gives rise to short-term funding risk.

However, this risk is mitigated partially by the company now holding a significant level of solvency margin and a further capital commitment from its largest shareholder (the Blackstone Group) until fiscal-year 2019, as well as a secured multiyear financing treaty with reinsurers until fiscal-year 2022.

A.M. Best believes Partners Life not only will continue to generate positive earnings, but also gradually improve its operating cash flows over time.

Partners Life is a direct insurer which offers protection-type products in New Zealand, including life insurance, income protection, medical insurance, disability insurance, trauma cover and business risk protection.

A.M. Best is the world's oldest and most authoritative insurance rating and information source.

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