KUALA LUMPUR, Oct 23 (Bernama) -- A.M. Best has affirmed the financial strength rating of B (Good) and the issuer credit rating of "bbb " of Co-operative Life Limited (Co-op Life) (New Zealand).
The outlook for both ratings were stable, said a statement issued in Hong Kong today.
The rating affirmations reflect Co-op Life's favorable risk-adjusted capitalization, low product risk profile and prudent investment portfolio. As a subsidiary of The Co-operative Bank Limited (Co-op Bank), Co-op Life also benefits from Co-op Bank's network of more than 30 branches throughout New Zealand, as well as a captive stream of business referrals from Co-op Bank.
Offsetting rating factors include the relatively small scale of Co-op Life's in-force portfolio, as well as continued contingent commitment to support certain debt holders of Co-op Bank.
As an insurance subsidiary of a banking group, Co-op Life's total assets are regulated to not be greater than 1 percent of the bank’s total consolidated assets. This effectively implied a growth constraint on this insurance business as well, the statement added.
Although the continued contingent commitment to support certain debt holders of Co-op Bank has diminished significantly over the past two years, the remaining contingent commitment remains sizeable relative to Co-op Life's capital position.
Co-op Life is well positioned at its current rating level. Factors that could lead to negative rating actions include material deterioration of actual solvency capital as a result of operating losses or deterioration in Co-op Bank's financial strength.
-- BERNAMA/MREM
http://www.bernama.com/bernama/v7/newsindex.php?id=1079256
No comments:
Post a Comment