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: Friday, June 14th, 6:57PM

Insurance

rss
Latest Headlines

Fidelity Life has rating confirmed

Fidelity Life has had its A- (Excellent) financial strength rating reaffirmed by AM Best, for the 19th consecutive year.

Friday, February 13th 2015, 3:09PM

“This excellent financial strength rating again reflects a consistent show of confidence in Fidelity Life, which has continued for close to two decades.  A.M. Best has also declared our long-term outlook as stable, which provides continuing confidence for our customers,” Fidelity Life chief executive Milton Jennings says.


The affirmations reflect Fidelity Life’s adequate risk-based capitalisation, favourable liquidity position and consistent operating results.

AM Best says the financial strength rating of A- (Excellent) and the issuer credit rating of "a-" of Fidelity Life both have "stable" outlook.

The affirmations reflect Fidelity Life's adequate risk-based capitalisation, favourable liquidity position and consistent operating results, the agency says.

"Fidelity Life continues to maintain an adequate level of capitalisation to support its risk profile, as measured by Best's Capital Adequacy Ratio (BCAR). The operation also maintains excellent liquidity to meet its obligations, backed by both positive operating cash flows and favourable liquidity ratios. Over the past five years, net profits have been consistently positive.

"Operating results have benefited from a stable stream of earnings from its high-quality investment portfolio, as well as the consistent production of profits from its in-force portfolio."

Offsetting rating factors include the company's capital-intensive business model, competitive landscape and high reinsurance leverage.

"Fidelity Life remains reliant on financial advisers to generate its new business, which makes the company's operating model very capital intensive. In addition, the environment of the New Zealand life insurance market—particularly in the adviser channel—remains highly competitive. Competitive pressure is likely to continue putting pressure on Fidelity Life's new business profitability.

Fidelity Life is well positioned at its current rating level. Downward pressure on the ratings could result if there is a significant deterioration in profitability, or if the company experiences difficulty to meet its target surplus policy.

Tags: Fidelity Life Milton Jennings Ratings

« 'Everyday' policies attracting young consumersRoom for improvement at Sovereign: CEO »

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

New customers get 3-months' premium-free on Fidelity Life
Fidelity Life has announced a special offer to cover new customers’ premiums for the first 3-months of their policies.

Premium relief for customers in drought areas
Fidelity Life offers premium relief to drought-affected customers

Fidelity Life relaunches customer engagement initiative
Once again Fidelity Life wants to recognise advisers who go above and beyond to deliver amazing customer service.

Asteron Life unveils product enhancements
Asteron Life is proud to announce a series of enhancements and clarifications to multiple covers across Personal and Business Insurance product offerings, reflecting its commitment to understanding and meeting the evolving needs of customers, and making it a more seamless experience for advisers.

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