A.M. Best Affirms Ratings of Union Medical Benefits Society Limited
HONG KONG--(BUSINESS WIRE)--A.M. Best has affirmed the financial strength rating of A- (Excellent) and issuer credit rating of “a-” of Union Medical Benefits Society Limited (UniMed) (New Zealand). The outlook for both ratings is stable.
The ratings reflect UniMed’s strong risk-adjusted capitalization, supported by its track record of profitable operating results, as well as its diversified distribution channels. The ratings also recognize the company’s balanced investment portfolio, which remains appropriate and highly liquid relative to the overall size of its liabilities.
Partially offsetting these positive rating factors are the competitive environment in the New Zealand health insurance market as well as the uncertainty UniMed’s potential acquisition activities may place on prospective risk-adjusted capitalization or operating performance. The company manages this risk by ensuring any merger and acquisition decisions will be subject to its internal capital management policy, actuarial advice and due diligence.
UniMed is well placed at its current rating level. However, a material deterioration in its loss ratio or capitalization on a risk-adjusted basis could lead to negative rating actions.
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.
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