Fidelity has kept its rating in its latest annual review

In its report the ratings agency says Fidelity’s balance sheet is very strong, and  it has adequate operating performance, a neutral business profile and appropriate enterprise risk management.

AM Best views Fidelity Life Assurance as having good financial flexibility, supported by its two largest shareholders, NZ Superannuation Fund and Ngāi Tahu Holdings. A partially offsetting balance sheet strength factor is Fidelity Life Assurance’s moderate reliance on third-party reinsurance.

The company’s operating performance is adequate.

“The company typically recorded positive earnings over the last five years, despite elevated operating expenses arising from system infrastructure investment, as well as the acquisition of Westpac Life-NZ-Limited (subsequently renamed to Fidelity Insurance Limited) in recent years,” AM Best says.