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: Wednesday, April 1st, 2:45PM

Insurance

rss
Latest Headlines

Accuro switches ratings agencies

Health Insurer Accuro has switched ratings agencies and been given a B (Stable) rating from AM Best.

Monday, February 10th 2014, 4:05PM

AM Best say the rating “reflects Accuro’s good business profile in the retail medical insurance sector of New Zealand, favourable growth and experience of its on sale products”. 

Accuro chief executive Geoff Annals says they dumped Standard and Poors, which gave the company a BB+ rating, and went to AM Best “because they are the specialist insurance rating agency most closely engaged in the New Zealand health insurance industry.”

“We look forward to working with AM Best and the rating shows the success we are having with our business model.  The stable outlook reflects Accuro’s continued and steady growth over the past five years.”

The full ratings details are that AM Best has assigned a financial strength rating of B (Fair) and issuer credit rating of "bb+" to Health Service Welfare Society Limited (which is the legal name for Accuro Health Insurance.

The ratings reflect Accuro's good business profile in the retail medical insurance sector of New Zealand, favourable growth and experience of its on-sale products, as well as its low investment risk profile.

Partially offsetting these positive factors are the high underwriting leverage and less favourable experience of its legacy products.

Accuro's premium earned was in excess of four-time surplus, which makes capitalisation very sensitive to higher-than-expected claim severity or frequency. Despite the favourable experience of its on-sale products, the company's legacy products, which represented over half of overall premium earned, consistently reported high claim ratios.

An upgrading of the company's ratings is unlikely in the short to medium term until it can demonstrate a solid track record of positive underwriting results. Meanwhile, any significant adverse changes to its industry environment or continued underwriting losses could lead to a downgrading of its ratings.

« Reserve Bank tempers reinsurance standardAccuro switches rating agencies »

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

MDRT plans virtual annual meeting
The MDRT's annual meeting, which attracts more than 10,000 delegates from around the world, will be a virtual event this year.

ANZIIF cancels insurance awards
The Australian and New Zealand Institute of Insurance and Finance (ANZIIF) has made the decision to cancel the 2020 Australian and New Zealand Insurance Industry Awards.

Partners Life supports rainbow community
Partners Life is again supporting the Rainbow Excellence Awards.

AIA receives Gender Tick accreditation
AIA New Zealand is the first insurer in New Zealand to be awarded the YWCA Gender Tick.

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
 
Site by Web Developer and eyelovedesign.com