AM BEST REVISES OUTLOOKS TO POSITIVE FOR PROVIDENT INSURANCE CORPORATION LIMITED
SINGAPORE, Dec 15 (Bernama-BUSINESS WIRE) -- AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of B (Fair) and the Long-Term Issuer Credit Rating of “bb+” (Fair) of Provident Insurance Corporation Limited (PICL) (New Zealand).
The Credit Ratings (ratings) reflect PICL’s balance sheet strength, which AM Best assesses as adequate, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
The positive outlooks reflect an improving trend in PICL’s balance sheet fundamentals, including risk-adjusted capitalisation and the size of the company’s absolute capital base. These factors, coupled with AM Best’s expectation of sustainable business growth and robust operating results over the medium term, could lead to positive rating actions.
The company’s balance sheet strength assessment is underpinned by risk-adjusted capitalisation, which is at the strong level in fiscal year (FY) 2022, as measured by Best’s Capital Adequacy Ratio (BCAR). AM Best expects PICL’s risk-adjusted capitalisation to remain at least a strong level over the medium term, supported by positive retained earnings and conservative investment strategy. Offsetting balance sheet factors include exposure to long-duration policies that increases reserving risks, and a dividend policy anticipated to distribute the majority of profits.
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