AM BEST COMMENTS ON CONSUMER INSURANCE SERVICES LIMITED CREDIT RATINGS

KUALA LUMPUR, March 11 (Bernama) -- Global credit rating agency, AM Best has commented that the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of ‘bbb-’ (Good) of Consumer Insurance Services Limited (CISL) New Zealand remain unchanged.

This follows recent announcement that humm group limited (Humm group), the ultimate parent of CISL, has entered into a binding agreement to sell its consumer finance business to Latitude Group Holdings Limited.

The transaction remains subject to shareholder and regulatory approvals.

Humm group’s consumer finance business comprises its ‘buy now pay later’, installment and credit card operations in Australia and New Zealand.

CISL provides credit card repayment protection insurance for Humm group’s New Zealand cardholder customers, according to a statement.

CISL’s rating fundamentals are currently not expected to be impacted by the transaction, with its insurance operations presently in run-off.

The company’s prior decision to cancel all existing card repayment insurance policies from July 1, 2022, and its target to relinquish its insurance licence in early 2023, are expected to remain unchanged.

However, AM Best will continue to monitor the progress of the transaction and consider any impact on CISL’s rating fundamentals going forward.

United States-headquartered AM Best, which is also news publisher and data analytics provider specialises in the insurance industry, has regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.

For more information, visit www.ambest.com.

-- BERNAMA