KUALA LUMPUR, March 4 (Bernama) -- AM Best has affirmed the Financial Strength Rating of B++ (good) and the Long-Term Issuer Credit Rating of ‘bbb’ of Momentum Life Limited (Momentum Life) in New Zealand, noting the outlook of these ratings as stable.
AM Best, a global rating agency focused on the insurance industry, said as a start-up insurer having commenced risk-bearing operations for the first time in March 2018, Momentum Life had a limited operation track record.
Consequently, AM Best’s assessment of the company’s rating fundamentals is principally, forward looking in nature.
The ratings reflect Momentum Life’s balance sheet strength, which AM Best categorised as adequate, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
In addition, the ratings factor is a neutral impact from the company’s 100 per cent ownership by BlueInc Group Pty Limited (BlueInc Group).
Meanwhile, the insurance company’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio is expected to remain at the strongest level over the medium term.
Despite high forecast underwriting growth during the company’s start-up phase driving increasing capital requirements, AM Best expects available capital to remain sufficient to offset this planned business expansion.
AM Best also views Momentum Life’s business profile as limited, reflecting the company’s start-up nature and its concentration to New Zealand’s life insurance sector.
Momentum Life provides guaranteed acceptance funeral insurance and lump-sum life insurance products, which are considered to have low product risk.
The company receives no rating enhancement or drag from BlueInc Group. Momentum Life benefits from operational support provided by its parent and other group subsidiaries.
-- BERNAMA
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