The ratings agency AM Best also confirmed Fidelity Life’s long-term issuer credit rating of A- and stated the outlook for both ratings was stable.
Digging down to the specifics, AM Best categorised Fidelity Life’s balance sheet as very strong, with adequate operating performance, neutral business profile and appropriate enterprise risk management.
AM Best is one of three ratings agencies (alongside Standard & Poors and Fitch) that offer financial strength ratings to New Zealand operators. The Insurance (Prudential Supervision) Act 2010 requires all insurers to get a financial strength rating, assessed annually with a site visit, or virtual site visit, and the rating agencies have a duty to review the ratings on a continual basis.
Fidelity Life chief financial officer Simon Pennington says: “These ratings are about providing customers and their advisers with comfort that we’ll keep delivering on our promise to customers at claim time. As a New Zealand owned firm, we’re really proud we’ve held our A- (Excellent) financial strength rating consistently since 1996.”
AM Best ratings also most recently awarded Partners Life an A- rating; Standard & Fitch most recently rated AMP Life A-, with Westpac Life and Asteron Life gaining A+. AIA has an AA rating from Fitch.
Insurers who are rated with these measures need to comply with provisions set by section 6 of the act; including information about overseas policyholder preference, and disclosure of the current ratings before entering into or renewing an insurance contract.
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