SINGAPORE--(BUSINESS WIRE)--A.M. Best has affirmed the financial strength rating of A (Excellent) and the issuer credit rating of “a” of BNZ Life Insurance Limited (BNZ Life) (New Zealand). The outlook for both ratings remains stable.
The rating affirmations reflect BNZ Life’s favorable balance sheet strength and consistently strong operating performance relative to the industry average. As an affiliated company of Bank of New Zealand Limited (BNZ Bank), BNZ Life benefits from a lower distribution cost than the independent financial advisors channel, as well as BNZ Bank’s strong brand recognition.
The key offsetting rating factor is BNZ Life’s high dividend payout ratio.
BNZ Life is well-positioned at its current rating level. BNZ Life’s ratings could be downgraded if risk-adjusted capitalization falls below the company’s forecast provided to A.M. Best due to higher than expected dividend payouts or a material deterioration in operating 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.
Key insurance criteria reports utilized:
• Evaluating Non-Insurance Ultimate Parents
• Risk Management and the Rating Process for Insurance Companies
• Underwriting Universal BCAR
Ratings are communicated to rated entities prior to publication, and unless stated otherwise, the ratings were not amended subsequent to that communication.
This press release relates to rating(s) that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best’s Ratings & Criteria Center.
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