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December 25, 2024 -Wednesday

 
  ​A.M. BEST AFFIRMS RATINGS OF FMG INSURANCE LIMITED

Tuesday 02/02/2016



SINGAPORE, Feb 2 (Bernama-BUSINESS WIRE) -- A.M. Best has affirmed the financial strength rating of A (Excellent) and the issuer credit rating of “a” of FMG Insurance Limited (FMGIL) (New Zealand). The outlook for both ratings is stable.
 
The ratings reflect FMGIL’s strong risk-adjusted capitalization and good operating performance. In addition, the ratings reflect the company’s well-established profile in the rural insurance sector of the New Zealand market.
 
A.M. Best expects FMGIL’s risk-adjusted capitalization to be maintained at a strong level. Although the company targets a relatively high average combined ratio, its risk-adjusted capitalization is expected to remain supportive of the current rating level, underpinned by the stable loss experience and a consistent stream of investment income. FMGIL’s operating performance is deemed to be good, as demonstrated by a five-year operating ratio of 93%.
 
Due to FMGIL’s focus on the rural market, insured risks tend to be widely spread geographically across the country. In addition, the company has continuously engaged resources in loss prevention programs, such as providing risk advices to policyholders in the rural sector. Altogether, these factors have helped the company achieve lower and less volatile loss ratios compared with the industry averages over the past several years.
 
A major offsetting factor in FMGIL’s rating assessment is its exposure to weather-related claims. As an insurer focused in the rural sector, the company’s underwriting results are inherently more sensitive to the effects of less severe but more frequent weather events.
 
FMGIL is well-positioned for its rating level, however, a significant deterioration in the operating performance or significant erosion in the risk-adjusted capitalization as a result of higher-than-expected frequency of weather-related events could place negative pressure on the ratings.
 
Ratings are communicated to rated entities prior to publication, and unless stated otherwise, the ratings were not amended subsequent to that communication.
 
This press release relates to rating(s) that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page.
 
A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
 
Copyright © 2016 by A.M. Best Company, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
 
Contacts
A.M. Best
Jason Shum
Financial Analyst
+65-6589-8400 Ext. 217
jason.shum@ambest.com
or
Chi-Yeung Lok
Senior Financial Analyst
+65-6589-8400 Ext. 211
chi-yeung.lok@ambest.com
or
Christopher Sharkey
Manager, Public Relations
+(1) 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
or
Jim Peavy
Assistant Vice President, Public Relations
+(1) 908 439 2200, ext. 5644
james.peavy@ambest.com

Source: A.M. Best
 
View this news release online at:
http://www.businesswire.com/news/home/20160129000000/en
 
--BERNAMA

 
 
 

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