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: Thursday, April 22nd, 7:26PM

Insurance

rss
Latest Headlines

Fitch runs Covid-19 ruler over industry

AIA has had its Fitch rating affirmed with a stable outlook, while Suncorp is affirmed with outlook revised to negative.

Monday, May 25th 2020, 4:40PM

Fitch has conducted a review of insurer ratings in Australia and New Zealand, with respect to the impact of the Covid-19 pandemic.

The review included nine insurers in the two countries.

The Insurer Financial Strength (IFS) ratings on six of the insurers were affirmed with stable outlooks. The IFS ratings on two others were affirmed, but the outlooks were revised to negative from stable. The rating on the last insurer was downgraded and remained on negative outlook.

The rating actions are based on Fitch's assessment of the impact of the coronavirus pandemic under a set of rating assumptions.

These assumptions were used to develop pro-forma financial metrics for the insurance groups, which Fitch compared with the rating guidelines defined in its insurance rating criteria, and with previously established rating sensitivities for the respective insurers.

Fitch expects the insurers' financial performance and earnings to deteriorate as a result of the economic fallout from the pandemic, especially via higher claims and lower investment yields.

Fitch took negative rating actions on insurers that were more exposed to the deteriorating economic conditions, including a lenders' mortgage insurer as well as an insurance group with banking exposure, which would be affected by higher unemployment and a worsening housing market.

"The impact on insurers' capital positions due the financial market disruption under our rating assumptions is somewhat contained because most of the Fitch-rated insurers in Australia and New Zealand have relatively low risky assets ratios.

"The ultimate implications of the pandemic on the insurers' credit profiles are unclear, and Fitch will continue to monitor the developments of the rated insurers. The pressure on the companies' credit profiles could increase if economic and financial market disruptions are prolonged and materially affect their capital and earnings."

AIA was affirmed at AA with a stable outlook, Suncorp, which includes Asteron Life, was affirmed at A+ with a negative outlook.

Tags: Fitch insurance

« MDRT waives production requirementsSouthern Cross halves staff numbers »

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

nib helps protect future rugby stars
nib New Zealand has partnered with the Auckland Blues Super Rugby Aotearoa team to launch its nib Little Legends Little Smiles initiative, giving 1000 junior rugby players OPRO custom-fitted mouthguards – the same ones worn by the professionals.

Insurance professionals get time to shine
The Australian and New Zealand Institute of Insurance and Finance (ANZIIF) has launched an initiative aimed at showcasing the success of insurance professionals.

Cigna retains high Financial Strength Rating
Cigna New Zealand has announced that A.M. Best has reaffirmed its Financial Strength Rating of A (excellent) and Long-Term Issuer credit rating of "a" - "with stable outlooks".

AIA adds more benefits to Vitality; Changes Airpoints

News Bites
Latest Comments
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
 
Site by Web Developer and eyelovedesign.com