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Six in a row for Sovereign

For a sixth-consecutive year, Sovereign has been awarded an A+ (Superior) grade from international credit-rating agency A.M. Best Company Inc .

Friday, January 18th 2013, 9:26AM 6 Comments

The rating, AM Best’s second-highest, is the highest awarded to any New Zealand-based insurer. Sovereign is the only insurer in the country to hold an A+ rating.

The ratings reflect Sovereign's supportive risk-based capitalisation and its diversified distribution channel for its new business in the New Zealand life insurance market,” AM Best says.

The rating, awarded late last year, reflects AM Best’s assessment that the company has “a superior ability to meet their ongoing insurance obligations”.

“The continued security of our financial strength rating is a testament to Sovereign’s stability, commitment to risk management and market-leading position,” Sovereign general manager of marketing and product David Drillien says. “We look forward to using our strong position to lead the New Zealand insurance market into 2013.”

The agency said Sovereign's continued profitability, higher earnings retention and capital support from its parent company helped Sovereign to increase its consolidated capital position by 12% to $751 million in the year ending June 30, 2012

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Comments from our readers

On 18 January 2013 at 5:31 pm Peter said:
I had a claim with Sovereign and the service was exceptional, quick and efficient. At time of sale my adviser said Sovereign would be slightly more expensive, think it was only marginal, but it would be worthwhile. My recommendation to friends is go with a company you can trust, and know have the capability to pay claims. Well done Sovereign
On 21 January 2013 at 8:22 am Paul Charles said:
Peter - I totally agree with your comments here about Sovereign. I find it intriguing reading a lot of the hyperbole here from time to time about premiums, ratings houses (and yes, that hairy old issue of commission) however surely the end result of advice and recommendation must be how financially secure the organisation you choose to place your clients business with is, and of course their ability to pay claims. I am not suggesting that other companies do not have the same ability to pay claims, but I do know from actual experience how good Sovereign are at administering claims, as I have had three claims that quite frankly were touch and go but Sovereign agree to pay all three in full. As a result of this experience I find myself recommending Sovereign in most case for my clients.
On 21 January 2013 at 4:59 pm Too late for me said:
Peter, Paul - lucky both of you. My adviser did not recommend Sovereign, I took her advice and got sent elsewhere, and upon trying to claim (for my wife) got told "no coverage", your critical illness is not covered. I recently learnt from a friend other companies would have covered her. Pity the poor consumer eh!
On 21 January 2013 at 6:48 pm Paul Charles said:
Too late for me she said - clearly as a layperson you are now aware of the benefits of paying your hard earned monies to an organisation that try to be 'dealmakers' and not 'dealbreakers' at claim time.

I sympathize for you and your wife, however I suspect your own situation is not an isolated one.

As I stated in original entry, it really does show the importance of insuring with an organisation that has the best claims approach in New Zealand - bar none.
On 21 January 2013 at 8:52 pm Bay Broker said:
'Too late' - I am sorry to hear about your experience. The 'new' IPSA legislation recognises quality insurers, such as Sovereign, an A+ AM Best rating is near the top (I believe the highest in the country). I've always recommended Sovereign because of this, I believe they pay near 95% of all claims. Consumers do need to be more savvy, and I understand the RBNZ is about to start a campaign on understanding ratings. Move to quality!
On 22 January 2013 at 11:22 am Teddy said:
@ Bay Broker and Paul Charles

You seem to be confused between a credit rating and a claims philosophy. I have been working with Sovereign for years and I can say more often than not, they have given the client a positive claims experience. There have been a few cases where they have been bullies and I have had to throw my weight around too. I wouldn’t want to have gone to them direct, I guarantee that is a roughie!

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