HONG KONG--(BUSINESS WIRE)--A.M. Best has assigned a financial strength rating of B++ (Good) and an issuer credit rating of "bbb" to Youi NZ Pty Limited (Youi NZ) (New Zealand). The outlook assigned to both ratings is stable.
Youi NZ is a newly formed company licensed as a non-life insurer in New Zealand. The company is wholly owned by Youi Holdings Pty Ltd (Australia), which in turn is controlled by OUTsurance Holdings Limited (South Africa). The ultimate parent is Rand Merchant Insurance Holdings Limited (South Africa).
The ratings of Youi NZ are based on its sound risk-adjusted capitalization and its prudent business plan. The company’s net premium-to-surplus ratio is anticipated to remain under 0.4 times throughout its first five years of operation. In addition, the assumptions used in the company’s business plan are based primarily on the group’s actual startup experience in Australia.
Partially offsetting these positive rating factors are Youi NZ’s lack of operating history in the New Zealand market and the challenges in executing its business plan amid heavy competition from established insurers within the region.
Factors that may trigger negative rating actions include a material adverse deviation of its risk-adjusted capital relative to its business plan due to a failure to meet its planned underwriting and investment performance.
The methodology used in determining these interactive ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Ratings are communicated to rated entities prior to publication, and unless stated otherwise, the ratings were not amended subsequent to that communication.
This rating announcement has been issued by A.M. Best Asia-Pacific Limited, which is a subsidiary of A.M. Best Company. A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2014 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.