SINGAPORE, March 24 (Bernama-BUSINESS WIRE) -- A.M. Best has affirmed the financial strength rating of B++ (Good) and the issuer credit rating of “bbb” of Partners Life Limited (Partners Life) (New Zealand). The outlook for both ratings remains stable.

The rating affirmations reflect Partners Life’s adequate balance sheet strength and good business profile in the New Zealand life insurance industry’s adviser channel.

Partners Life continues to hold a moderate amount of capital over its local regulatory capital requirement. In addition, the company’s risk-based capitalization is expected to remain supportive of the current rating level, underpinned by a high quality reinsurance panel and ongoing fundraising initiatives to support its business plan.

Partners Life has been the fastest-growing life insurer in New Zealand. For the 12-month period ending Sept. 30, 2015, Partners Life continued to maintain its status as one of the market leaders in new business premiums, capturing a market share of around 15% (second only to the largest life insurer in New Zealand).

Partially offsetting these positive rating factors are the company’s high reinsurance leverage, sizable exposure to net insurance contract assets and relatively small in-force portfolio.

Partners Life remains reliant on financial advisers to generate new business, which makes the company’s operating model very capital intensive, leading to high reinsurance leverage and a sizable amount of net insurance contract assets (deferred acquisition costs) on its balance sheet. In addition, with a relatively small in-force portfolio, the potential to experience variations in operating results is inherently higher than its peers.

Partners Life is well-positioned at its current rating level. The ratings could be downgraded if its local regulatory solvency margin falls below the company’s projection provided to A.M. Best due to large impairments in net insurance contract assets or if the company fails to raise sufficient capital on a timely basis to support its operating plan.

Ratings are communicated to rated entities prior to publication, and unless stated otherwise, the ratings were not amended subsequent to that communication.

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