KUALA LUMPUR, March 2 -- Pinnacle Life Limited (Pinnacle Life) New Zealand has the Financial Strength Rating of B (fair) and the Long-Term Issuer Credit Rating of ‘bb+’, resulting in stable outlook of these ratings.
This follows by the recent affirmation by the United States-based credit rating agency, AM Best in a statement.
The ratings reflect Pinnacle Life’s balance sheet strength, which AM Best described as adequate, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
Pinnacle Life’s balance sheet strength is underpinned by its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio, which AM Best expects to remain at the strongest level.
Despite this, the company has a small absolute capital base, which increases its sensitivity to shock events, as well as to changes in future performance and intangible assets.
In addition, AM Best views the company as having a high reliance on third-party reinsurance.
Prospectively, the agency expects controlled underwriting growth and a robust pricing strategy to support the maintenance of adequate operating performance over the medium term.
Pinnacle Life is focused mainly on term life insurance and funeral insurance. Its limited business profile assessment is largely a result of its small-scale operations, as well as limited product and geographical diversification in New Zealand.
-- BERNAMA
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