The global rating agency has also affirmed the Long-Term ICR of ‘bbb-’ of TIL’s ultimate parent, TOWER Limited (TL), with the outlook of these credit ratings remaining stable, according to a statement.
The ratings reflect TIL’s balance sheet strength, which AM Best categorised as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
AM Best views TIL as having strong financial flexibility as a result of its ownership by TL which has injected NZ$ 35 million (NZ$ 1 = RM2.78) of capital into TIL in fiscal-year 2017 to bolster its regulatory solvency position.
TIL has reported operating losses in each of the past four years (fiscal-years 2015 to 2018), driven by adverse development on its Canterbury earthquake claims.
However, TIL’s combined ratio has exhibited a gradual improvement over recent years, and AM Best expects the company to report positive technical and overall earnings from fiscal-year 2019 onward.
TIL is a medium-sized insurer that operates predominantly in New Zealand, with some operations based in the Pacific Islands. Its core product offerings are home and motor insurance, with a significant portion of the company’s business sourced from direct marketing and partnerships.
For more information, contact http://www.ambest.com.
-- BERNAMA
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