Cigna's Financial Strength Rating of A (Excellent) and Long-Term Issuer Credit Rating of “a” with stable outlooks, remains unchanged from last year's assessment.
Cigna New Zealand chief financial officer Mark Schollum says Cigna is pleased the rating has remained unchanged.
“This is confirmation of Cigna’s strong balance sheet, the underlying long-term sustainability of our business and our strong global backing,” Schollum says.
“At Cigna, we’re committed to being here for our customers not only now but in the long-term. Having this continued confidence in our business should be reassuring to our advisers and customers in these uncertain times.”
AM Best is a United States-based global credit rating agency, news publisher and data analytics provider specializing in the insurance industry.
In its rating report, AM Best states, "Cigna has strong earnings and dividends from the group’s insurance entities".
"These have helped bolster holding company metrics, such as interest coverage and reduction of outstanding debt...and Cigna’s insurance subsidiaries have consistently provided cash flow upstream in the form of dividends, which have been growing each of the past two years, given favourable operating results.
"Cigna Life & Health Group reported strong earnings again in 2020, supported by lower utilization in the face of the Covid-19 pandemic, with the organization also consistently reporting strong double-digit profitability ratios," the report states.
AM Best goes on to say the ratings of Cigna Life Insurance New Zealand Limited (CLINZ) "reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate ERM.
"Furthermore, the ratings of CLINZ factor in rating enhancement from the Cigna group. This reflects integration and ownership from Cigna group and AM Best’s expectation that the group would provide capital support if required.
"CLINZ ranks among the largest life insurance companies in New Zealand, benefiting from a multichannel distribution approach. While the company accounts for a small component of the Cigna group’s consolidated revenues and earnings, it is viewed as significant to the group’s operations in the Asia-Pacific region."
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