tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Thursday, March 28th, 10:13PM

Insurance

rss
Latest Headlines

AM Best affirms Cigna rating

AM Best has affirmed the financial strength rating of A- (Excellent) and issuer credit rating of ‘a-‘ for Cigna Life.

Friday, December 21st 2012, 12:22PM

by Benn Bathgate

The ratings agency said the outlook for both ratings is stable and reflects Cigna’s strong risk-adjusted capitalisation and consistent operating performance.

AM Best said Cigna’s capitalisation on a risk-adjusted basis, evaluated by its Capital Adequacy Ratio, demonstrates that it is strongly capitalised, and that a consistent stream of interest income has been the key contributor to the company’s capital growth in recent years.

“Over fiscal years 2010 and 2011, experience profits also have exceeded the planned margin for two consecutive years, reflecting the strong profitability of its book of business,” AM Best said.

“AM Best expects that Cigna’s strong capitalisation will remain through its retained earnings.”

The agency said the primary factor offsetting Cigna’s rating is the challenging operating environment for the New Zealand life insurance market, and that while Cigna continues its process of diversifying its product range, “it will take time to grow its premium revenue from other products.”

AM Best said Cigna’s rating could be upgraded or its outlook revised if it continues to grow other product lines, or there are no other material deviations from its planned earnings and capitalisation over the next few years.

“Conversely, if there were a significant deterioration in the company’s risk-adjusted capitalisation, the outlook and/or ratings could be pressured.”

Benn Bathgate is a business reporter for ASSET and Good Returns, email story ideas to benn@goodreturns.co.nz

« What pushed your buttons this year?Advisers offered opportunity to net life sales »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
Insurance Briefs

Partners helps fund depression recovery centre
New Whakamātūtū Wellington Depression Recovery Centre gets financial boost from Partners Life.

AIA adds cover for prophylactic surgery following cancer
AIA makes changes to policies and adds preventative surgery for several types of cancer.

Chubb appoints David Morrow as Country President for New Zealand
Chubb has appointed David Morrow as Country President for New Zealand.

nib adds specialist skills to its board
Two new board appointments at health insurer nib add new perspectives, chairman says.

News Bites
Latest Comments
Subscribe Now

Cover Notes - Specific news aimed at risk advisers

Previous News
Most Commented On
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com
x