The ratings reflect Accuro’s adequate risk-adjusted capitalization and improved operating performance over the past five years. The company has a good business profile in New Zealand’s retail medical insurance sector. 

Accuro’s adequate risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is due to its favorable liquidity position and conservative investment portfolio. The company improved its underwriting performance through a reduction in its operating expense ratio and favorable results from its current product offerings.

An offsetting rating factor is the company’s relatively high underwriting leverage. Net premium earned remained at three times capital, which leaves the level of capitalization relatively more sensitive to higher-than-expected claims experience. 

Positive rating actions could occur if the company continues to generate positive operating results while maintaining an adequate risk-adjusted capitalization. Negative rating actions may occur if the company’s risk-adjusted capitalization deteriorates significantly due to underwriting deficit. 

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

This press release relates to Credit Ratings 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.
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