HONG KONG -- (BUSINESS WIRE) --
A.M. Best has removed from under review with negative implications and affirmed the financial strength rating of A- (Excellent) and issuer credit rating of “a-” of Fidelity Life Assurance Company Limited (Fidelity Life) (New Zealand). The outlook assigned to both ratings is stable.
The affirmation of Fidelity Life’s ratings reflects its adequate risk-adjusted capitalization, continued operating profitability and high earnings retention.
In August 2013, Fidelity Life's ratings were placed under review with negative implications, following the company's announcement to acquire certain in-force business of TOWER Health & Life Limited and TOWER Life (N.Z.) Limited.
Subsequently, A.M. Best reviewed Fidelity Life's latest financial condition, key sensitivities and capital management plan and believes that the company’s post-acquisition risk-adjusted capitalization will remain supportive of the current ratings.
The key offsetting factor is the impact of competitive pressures on Fidelity Life, which may result in a greater lapse of policies than expected and/or smaller premium increases than anticipated.
Upward rating movement is unlikely in the medium term. Negative rating actions may occur if there is a material deviation from Fidelity Life’s target solvency capital. Additionally, any significant deterioration in the lapse or expense experiences could put negative pressure on the ratings.
The methodology used in determining these interactive ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Ratings are communicated to rated entities prior to publication, and unless stated otherwise, the ratings were not amended subsequent to that communication.
This rating announcement has been issued by A.M. Best Asia-Pacific Limited, which is a subsidiary of A.M. Best Company. A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2014 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.
CONTACT:
A.M. Best Company
Jason Shum, +852-2827-3430
Financial Analyst
jason.shum@ambest.com
or
Ken Chow, +852-2827-3426
Senior Financial Analyst
ken.chow@ambest.com
or
Rachelle Morrow, +(1) 908-439-2200, ext. 5378
Senior Manager, Public Relations
rachelle.morrow@ambest.com
or
Jim Peavy, +(1) 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com
