AM Best Places Credit Ratings of Lifetime Income Limited Under Review with Negative Implications

SINGAPORE--(BUSINESS WIRE)--AM Best has placed under review with negative implications the Financial Strength Rating of B (Fair) and the Long-Term Issuer Credit Rating of “bb” of Lifetime Income Limited (LIL) (New Zealand).

This Credit Rating (rating) action follows recent regulatory licence conditions imposed on the company by the Reserve Bank of New Zealand (RBNZ), which will require LIL to hold additional capital margins in excess of existing regulatory minimums. These licence conditions follow volatility in the company’s regulatory solvency position, with breaches of the minimum solvency margin identified in fiscal-year 2020. LIL’s parent group, Retirement Income Group Limited, has initiated a capital raising exercise, which is expected to complete in December 2020. Proceeds from the capital raise are expected to be downstreamed to LIL in order for it to comply with the new licence conditions imposed by the RBNZ, as well as to support the next phase of its strategic development plan. The ratings have been placed under review with negative implications to reflect uncertainty surrounding the execution of the planned capital raise and consequently LIL’s ability to comply with its licence conditions.

The ratings will remain under review pending completion of the group’s capital raise and until AM Best can assess the impact of recent developments on LIL’s credit rating fundamentals, including balance sheet strength and enterprise risk management.

Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.

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