About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   depositrates.co.nz  |   landlords.co.nz
Last Article Uploaded: Friday, April 17th, 3:52PM
rss
Latest Headlines

Policyholder security weakened: S&P says

Standard & Poors says demutualisation of life companies is hurting policyholder security.

Tuesday, March 6th 2001, 6:55AM

Ratings agency Standard and Poors is warning that demutualisation of life insurance companies is starting to hurt policyholder security.

"Continuing and accelerating change ultimately is altering the risk profile of the companies who are trusted with life insurance, disability income protection and superannuation," S&P Financial Services Ratings director Natalie Wells says.

"In the struggle to optimise the position of various stakeholders, Australian life insurers increasingly are influenced by the insatiable demands of shareholders. While policyholders may benefit from product innovation, easier access, and more professional and informed sales processes, they have experienced some diminution in security as life companies seek optimal balance sheet efficiency and strive for improved performance in an increasingly challenging operating environment."

Wells says these developments have influenced the downward drift in Australasian life insurance ratings, a trend which is reflected globally.

In the past decade there have been significant falls in the insurer financial strength ratings of some major life insurers in Australia or New Zealand. For instance AMP has fallen from AAA to AA, MLC from AAA to AA and Zurich Life from AA to A+.

"Other ratings remain under pressure as reflected by their negative outlook."

Going forward S&P expects "continued mild erosion" in the financial strength of Australian and New Zealand life companies.

Those companies most likely to be affected include those who cannot achieve appropriate scale, strong market position, and supportive operating performance; and those who continue to drive capital from their balance sheets without a corresponding reduction in risk or enhancement in financial flexibility, she says.

« News Round UpGet your tax questions answered online »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • AFAs slow to update DIMS status
    “Well said MPT. It seems that the institutions are well on their way to dominate the personalised investment advice market....”
    2 days ago by macca
  • Are we sicker or just savvier customers?
    “Related to your first bullet point - with advances in medicine, conditions which would previously have seen you shuffle off...”
    2 days ago by dcwhyte
  • AFAs slow to update DIMS status
    “This begs the question has the FMA been incredibly successful or incredibly inept? Apparently 1000+ advisers now either...”
    2 days ago by MPT Heretic
  • PAA axes holiday homes scheme
    “Another way of verbalising the alleged inequity of the proposed cashing out of credits is as follows: The subscribers...”
    3 days ago by Murray Weatherston
  • PAA axes holiday homes scheme
    “I agree pretty much with what everyone above is saying and I only hope the Board of the PAA are reading these comments. ...”
    3 days ago by AFA Adviser
Subscribe Now

Weekly Wrap

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 6.74 5.99 5.99 6.29
ANZ Special - 5.49 5.39 5.79
ASB Bank 6.75 5.99 5.99 ▲6.39
ASB Bank Special - 5.59 5.39 ▲5.59
BankDirect 6.75 5.99 6.09 ▲6.39
BankDirect Special - 5.59 5.39 ▲5.59
BNZ - Mortgage One 7.15 - - -
BNZ - Rapid Repay 6.74 - - -
BNZ - Special - - 5.15 -
BNZ - Std, FlyBuys 6.74 5.49 5.39 5.55
BNZ - TotalMoney 6.74 - - -
Lender Flt 1yr 2yr 3yr
Credit Union Auckland 6.70 - - -
Credit Union Baywide 6.45 5.95 5.99 -
Credit Union North 6.45 - - -
Credit Union South 5.75 - - -
eMortgage 6.04 6.15 6.69 7.19
Finance Direct 6.10 6.45 6.69 7.10
First Credit Union 6.45 - - -
General Finance 5.95 6.25 6.50 7.10
HBS Bank 6.65 5.69 5.39 5.69
HBS Special - 5.59 5.19 5.49
Heartland 6.70 7.00 7.25 7.85
Lender Flt 1yr 2yr 3yr
Heretaunga Building Society 6.70 5.70 5.40 -
Housing NZ Corp 6.74 5.70 5.99 6.29
HSBC Premier 6.84 5.65 5.65 5.65
HSBC Premier LVR > 80% - - - -
HSBC Special - 5.29 5.29 5.29
ICBC 6.75 5.99 6.39 -
Kiwibank 6.65 5.69 6.09 6.29
Kiwibank - Capped - - - -
Kiwibank - Offset 6.55 - - -
Kiwibank Special - - 5.39 5.55
Liberty - - - -
Lender Flt 1yr 2yr 3yr
Napier Building Society 5.80 6.00 6.70 -
Nelson Building Society 6.95 6.15 6.60 -
NZ Home Loans 6.85 6.09 6.40 6.29
Perpetual Trust 7.70 - - -
Resimac 6.59 ▼5.88 ▼5.86 ▼5.90
SBS Bank 6.65 5.69 5.39 5.69
SBS Bank Special - 5.59 5.19 5.49
Silver Fern 5.95 6.10 6.55 7.05
Sovereign 6.85 5.99 6.09 6.29
Sovereign Special - 5.59 5.39 5.45
The Co-operative Bank 6.70 5.59 5.39 5.59
Lender Flt 1yr 2yr 3yr
TSB Bank 6.74 5.70 5.70 6.00
TSB Special - - 5.35 5.60
Wairarapa Building Society 6.20 5.75 5.95 -
Westpac 6.59 5.99 5.99 5.99
Westpac - Capped rates - 6.74 6.99 -
Westpac - Offset 6.59 - - -
Westpac Special - - 5.39 5.89
Median 6.70 5.81 5.91 5.89

Last updated: 16 April 2015 9:09pm

News Quiz

How many Mike Pero Mortgage franchisees have served notice on the franchisor, Liberty Financial, that they will not be renewing their contracts?

7

10

13

23

18

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by PHP Developer and eyelovedesign.com