SINGAPORE--(BUSINESS WIRE)--AM Best has maintained the under review with developing implications status for the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Partners Life Limited (Partners Life) (New Zealand).
These Credit Ratings (ratings) were placed under review with developing implications on 18 December 2020, following the announcement that Partners Life had entered into an agreement with National Australia Bank Limited to acquire its New Zealand life insurance business, including BNZ Life Insurance Limited. The transaction also includes the establishment of an exclusive 10-year agreement for the referral of Bank of New Zealand customers with life insurance needs to Partners Life. The total transaction consideration is NZD 290 million (USD 208 million).
The ratings have been maintained under review with developing implications, as the transaction, which is subject to customary closing conditions, including regulatory and other approvals, is now expected to be completed by the end of March 2022.
The under review with developing implications status reflects the need for AM Best to assess fully the financial and operational impacts of the acquisition and the funding structure on Partners Life’s rating fundamentals, including on its balance sheet strength and business profile.
The ratings will remain under review pending completion of the transaction and until AM Best can complete its assessment of Partners Life’s post-acquisition credit rating fundamentals.
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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