AM Best Affirms Credit Ratings of Fidelity Life Assurance Company Limited

SINGAPORE--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Fidelity Life Assurance Company Limited (Fidelity Life Assurance) (New Zealand). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Fidelity Life Assurance’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

Fidelity Life Assurance’s balance sheet strength assessment is underpinned by its risk-adjusted capitalisation, which was at the strongest level as of fiscal year-end (30 June) 2025, as measured by Best’s Capital Adequacy Ratio (BCAR). The company has a robust capital management strategy that supports an appropriate regulatory solvency position, as well as the maintenance of risk-adjusted capitalisation at the strongest level over the medium term. Additionally, AM Best views Fidelity Life Assurance as having good financial flexibility, supported by its two largest shareholders, NZ Superannuation Fund and Ngāi Tahu Holdings Corporation Limited. A partially offsetting balance sheet strength factor is Fidelity Life Assurance’s moderate reliance on third-party reinsurance; however, this risk is partly mitigated by the sound credit quality of the reinsurance panel.

AM Best assesses Fidelity Life Assurance’s operating performance as adequate. The company recorded positive earnings in most of the last five years (fiscal-years 2021-2025) and for the first half of fiscal-year 2026. This is driven by robust insurance service result of the in-force life insurance portfolio, supported by pricing discipline. In fiscal-year 2025, Fidelity Life Assurance recorded a return-on-equity ratio of 6.4% with a net investment yield of 5.1%. AM Best expects the company’s operating performance metrics to remain supportive of the adequate assessment over the medium term.

Fidelity Life Assurance ranks among the largest life insurance companies in New Zealand. The company’s product offerings include term life, disability income, trauma and total permanent disability insurance, with a legacy portfolio of investment-linked and traditional participating policies. The insurance policies are distributed predominantly through financial advisers and Westpac New Zealand Limited’s banking network, with an exclusive 15-year distribution arrangement with the bank.

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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