NZMPL is a single-line insurer in New Zealand, focused on providing medical malpractice insurance to medical practitioners and health professionals.

The ratings reflect NZMPL’s very strong risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio, consistently profitable operating performance and low product risk profile.

NZMPL’s very strong risk-adjusted capitalization reflects mainly the company’s low underwriting leverage, strong quality of capital and favorable liquidity position. In addition, the company has operated profitably within its core market, supported by favorable claims experience and a competitive expense ratio.

Major offsetting factors in NZMPL’s rating assessment are the company’s limited market profile and small capital base.

As a single-line insurer that captures only a very small percentage of industry premiums, NZMPL has a limited market profile. Furthermore, with a capital size of approximately NZD 3.4 million, the company maintains a thin buffer against the minimum capital requirement under the Reserve Bank of New Zealand’s non-life solvency standard.

While NZMPL is well-positioned for its current ratings, the ratings could be downgraded if the company’s financial performance deteriorates significantly due to adverse claims experience.

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

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