AM Best upgrades Partners Life’s credit ratings

KUALA LUMPUR, Dec 16 (Bernama) -- AM Best has removed from under review with positive implications and upgraded the financial strength rating to A (Excellent) from A- (Excellent) and the long-term issuer credit rating to “a” (Excellent) from “a-” (Excellent) of New Zealand’s Partners Life Ltd (Partners Life).

AM Best said in a statement that the outlook assigned to these credit ratings is stable.

“The ratings reflect Partners Life’s balance sheet strength, which AM Best assessed as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.” it said.

These rating actions follow the acquisition of Partners Group Holdings Ltd (PGHL), Partners Life’s parent, by Dai-ichi Life Holdings Inc (Dai-ichi group) on Nov 30 this year in line with a previous announcement on Aug 12 that Dai-ichi group had entered into an agreement to buy 100 per cent of PGHL’s shares for approximately NZ$1 billion. (NZ$1=RM2.81)

The rating upgrades factor in rating enhancement from Dai-ichi group following its acquisition of Partners Life. This reflects integration with and ownership by the Dai-ichi group, one of Japan’s largest life insurers.

In addition, AM Best expects Dai-ichi group to provide capital support to Partners Life in the event that the company is unable to maintain an appropriate level of capital adequacy.

“While Partners Life accounts for a small component of Dai-ichi group’s overall revenues and earnings, the acquisition grows the group’s presence notably in New Zealand,” the credit rating agency said.

It said the company’s balance sheet strength assessment is underpinned by its risk-adjusted capitalisation, which is expected to remain at the strongest level over the medium term, as measured by Best’s Capital Adequacy Ratio.

Partners Life’s business profile assessment reflects its prominent position in New Zealand’s life insurance industry, with a diversified product range including term life, disability income, trauma, total permanent disability and medical insurance.

-- BERNAMA