AM Best affirms Beneficial Insurance Limited Credit Ratings

KUALA LUMPUR, Oct 9 -- AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of ‘bbb’ of Beneficial Insurance Limited (BIL) New Zealand.

According to a statement, the outlook of these Credit Ratings (ratings) is stable.

The ratings reflect BIL’s balance sheet strength, which AM Best categorises as adequate, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.

BIL’s balance sheet strength assessment is underpinned by its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio, which remained at the strongest level as of fiscal year-end 2020.

In addition, AM Best views the company to have limited financial flexibility, with a dependence on its privately held holding company, Beneficial Holdings Limited, for financial support, if required.

Over the medium term, AM Best expects the company’s strong internal capital generation to enable it to maintain its risk-adjusted capitalisation at the strongest level.

Prospectively, AM Best expects BIL to maintain strong underwriting performance over the medium term, supported by continued low loss ratios and gradually improving expense ratios, as the company executes its business growth plan and benefits from economies of scale.

BIL is a niche insurer that focuses on pet insurance in New Zealand. The company’s limited business profile assessment is largely a result of its small-scale operations, as well as product and geographical concentration in New Zealand.

-- BERNAMA