KUALA LUMPUR, March 5 (Bernama) -- AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of ‘a’ of FMG Insurance Limited (FMGIL) New Zealand.
According to a statement, the outlook of these Credit Ratings (ratings) is stable.
The ratings reflect FMGIL’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.
In addition, the ratings factor in a neutral holding company impact from the company’s 100 per cent ownership by Farmers’ Mutual Group (FMG).
FMGIL’s balance sheet strength assessment is underpinned by its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio, which AM Best expects to remain at the strongest level over the medium term.
The global credit rating agency, AM Best views the company’s investment portfolio as having moderate risk with a focus on cash and high-quality fixed income securities, albeit with some exposure to equities.
AM Best assesses FMGIL’s operating performance as adequate. The company has generated a five-year average return-on-equity ratio of 3.8 per cent (fiscal-years 2016-2020). Operating results over this period were largely driven by robust investment returns.
FMGIL continues to exhibit a strong direct distribution business model, aided by its close relationships with customers and its ownership by FMG, which has a long history and strong brand recognition in New Zealand’s rural sector.
More details at www.ambest.com.
-- BERNAMA
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