AM Best Downgrades Credit Ratings of Momentum Life Limited; Places Credit Ratings Under Review With Negative Implications

SINGAPORE--(BUSINESS WIRE)--AM Best has downgraded the Financial Strength Rating to B (Fair) from B++ (Good) and the Long-Term Issuer Credit Rating to “bb” (Fair) from “bbb” (Good) of Momentum Life Limited (Momentum Life) (New Zealand). Concurrently, AM Best has placed these Credit Ratings (ratings) under review with negative implications.

This rating action follows Momentum Life’s weakened current capital position and the material uncertainty related to the company’s future capital adequacy to support its operations. Additionally, the decline in the company’s regulatory solvency position has highlighted risk management weaknesses within its enterprise risk management. The company has taken remedial actions to improve its capital position, including restructuring its operations earlier in the year, with further restructuring underway. However, time is needed to ascertain the effectiveness of these measures.

AM Best expects to resolve the under review with negative implications status once there is certainty regarding the company's long-term business strategy and a full assessment of the credit rating fundamentals has been completed.

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

This press release relates to Credit Ratings that have been published on AM 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 see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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