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, May 22nd, 3:05PM

Insurance

rss
Latest Headlines

OnePath put on negative credit watch following sale

Ratings agency Standard and Poors has put OnePath on CreditWatch with negative
implications because of its new parent company’s corporate actions.

Wednesday, December 5th 2018, 10:10PM

ANZ sold OnePath to Cigna Life this month and at the same time Cigna’s parent company is proposing to acquire pharmacy benefit manager Express Scripts (ESI).

The agency says that after regulatory approvals are granted for the Cigna ESI merger, it may downgrade Cigna's insurance operating companies to 'A' from 'AA-', and subsequently OnePath from ‘A+' to 'A'.

S&P says Cigna is likely to provide support to OnePath given that its services are complementary to Cigna's existing capabilities and international strategy, and further strengthens Cigna’s existing operations in New Zealand.

The ratings on OnePath reflect the insurer's strong competitive position and strong capital and earnings position, which we view as ongoing under Cigna ownership. The ratings include a one-notch uplift above its 'a' stand-alone credit profile due to expected group support if required.

The CreditWatch negative placement of the ratings on OnePath reflects the status on its new parent, Cigna.

“We expect to resolve the CreditWatch within the next three months once the transaction between Cigna and ESI receives regulatory approval and is closer to completion. After regulatory approvals are granted, we may downgrade Cigna's insurance operating companies to 'A' from 'AA-', and subsequently OnePath to 'A' from 'A+', which would equate with its stand-alone credit profile.”

Tags: Cigna OnePath S&P

« Old approach won't always stack up Fidelity Life waives policy fees »

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

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.

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

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