SINGAPORE, July 10 (Bernama-BUSINESS WIRE) -- A.M. Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Foundation Life (NZ) Limited (FLNZ) (New Zealand).
 
The revised outlooks reflect the improved credit profile of FLNZ’s immediate holding company, Foundation Life (NZ) Holdings Limited.
 
The Credit Ratings (ratings) reflect FLNZ’s strong risk-adjusted capitalization, consistently positive operating performance, high-quality investment assets and low product risk profile. Moreover, a significant buffer, in the form of excess assets over guaranteed liabilities, is available to absorb potential unfavorable experiences through adjusting future bonus declarations of its participating policies.
 
Partially offsetting rating factors include the run-off nature of FLNZ’s business profile and its increasing per-policy expenses. In addition, A.M. Best is concerned over whether the company will implement its plan to restructure the participating policyholder benefits, and the associated business and operational risks that may arise if the plan proceeds.
 
While positive rating actions are unlikely, negative rating actions could result from significant deterioration in FLNZ’s risk-adjusted capitalization due to higher-than-expected dividend payouts or adverse experience.
 
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. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
 
A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
 
Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.
 
Contacts
A.M. Best
Larina Huang
Associate Financial Analyst
+65 6589 8400, ext. 218
larina.huang@ambest.com
or
Jason Shum
Senior Financial Analyst
+65 6589 8400, ext. 217
jason.shum@ambest.com
or
Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
or
Jim Peavy
Director, 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/20170707005512/en
 
--BERNAMA