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, July 23rd, 7:18PM

Insurance

rss
Latest Headlines

Rating agency reviews OnePath Life

Wednesday, June 20th 2018, 8:04AM

S&P Global Ratings said it has affirmed its 'A+' financial strength and issuer credit ratings on OnePath Life, however the outlook remains negative.

"We affirmed the ratings on OnePath Life based on the insurer's strong competitive position and very strong capital and earnings position. The ratings include a one-notch uplift above its 'a' stand-alone credit profile due to expected group support if required."

S&P expects that ANZ "will likely provide extraordinary support to OnePath Life, if required, prior to completion of the sale process, which is expected in fiscal 2019."

Following the potential sale of OnePath Life, we also expect its new owner, Cigna, will likely provide support given that OnePath Life's services are complementary to its existing
capabilities and international strategy.

The negative outlook on OnePath Life reflects:

  • The negative outlook on its parent, ANZ group; and
  • Assuming the sale proceeds, uncertainty over its capital structure under its prospective new owners; integration risks associated with the transaction; and potential for a lowering of the ratings on Cigna given it is on CreditWatch negative. 

There is potential we would lower our rating on OnePath Life in the coming two years. We would expect to do so prior to its sale if we were to downgrade ANZ Group.

We would also expect to lower the rating after the sale in the following three
scenarios:

  • A weakening in the entity's capital structure (including dividend policy, investment and reinsurance strategies);
  • A substantial disruption to operations as a result of integration challenges; or
  • We were to lower the 'AA-' rating on Cigna, which is currently on CreditWatch negative, such that prospectively we are unlikely to factor group support into the rating.

A return to a stable outlook is largely dependent on completion of the sale and resultant group support.

Tags: Cigna OnePath S&P

« Former Lifetime boss acquires advice firm of the same nameCigna cuts ties with LifeDirect »

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

Flood claims cost almost $45 million
Insurance customers in the Canterbury region lodged 3,538 claims costing over $43.8 million in losses following the May 29 - June 1 floods according to provisional figures released by the Insurance Council of New Zealand (ICNZ).

AIA Vitality partners with Countdown and New Balance
AIA NZ has announced further enhancements to AIA Vitality in the lead up to the second anniversary of its flagship health and wellbeing programme in New Zealand.

ICNZ launches te reo Maori title
The Insurance Council of New Zealand has embraced one of the country's official languages after launching its te reo Maori name - Te Kāhui Inihua o Aotearoa.

EQC offloads disaster claim management to Kiwi insurers
From the end of June, New Zealanders will have a single point of contact for natural disaster claims with the EQC handing over management of claims to eight local insurers.

News Bites
Latest Comments
  • Underwriting delays for nib special offer
    “I have a significant objection to a point in this communication, and I have raised it with nib directly. "In future, please...”
    22 hours ago by JPHale
  • Cryptocurrency; Advisers wary but must evolve
    “Financial services getting into crypto right now has the typical feeling of the mum and dad investor jumping in. FOMO is...”
    2 days ago by JPHale
  • FMA report slams insurers
    “There's a gap, alright. However, the mainstream media has missed what Matthew pointed out here, the real impact on the consumer...”
    2 days ago by JPHale
  • FMA report slams insurers
    “@Murray If 95% of legitimate well established and capable business did not meet expectations, might the age old saying "they...”
    2 days ago by LNF
  • FMA report slams insurers
    “Meanwhile, in the real world, advisers are still trying to secure PI cover by the end of the month so they can remain in...”
    2 days ago by Adviser1
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

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