SINGAPORE--(BUSINESS WIRE)--A.M. Best has affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of “a-” of AMI Insurance Limited (AMI) (New Zealand). The outlook for both ratings is stable.
The rating affirmations reflect AMI's established business profile and good operating performance. The ratings also consider the support AMI receives from its parent company, IAG (NZ) Holdings Limited, in terms of risk management and strategic initiatives for business integration.
These positive rating factors are partially offset by AMI's marginal risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR).
Factors that could result in favorable rating actions include a significant increase in actual solvency capital or sustained earnings growth from underwriting. Negative rating actions could occur if the company experiences a major operating loss, which will lead to a significant deterioration in risk-adjusted capitalization.
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:
- Catastrophe Analysis in A.M. Best Ratings
- Rating Members of Insurance Groups
- Risk Management and the Rating Process for Insurance Companies
- Understanding 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.
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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