2013-01-30 18:12:37 -
A.M. Best Asia-Pacific Limited has affirmed the financial strength rating of B++ (Good) and issuer credit rating of “bbb+” of New Zealand Local Government Insurance Corporation Limited (Civic Assurance) (New Zealand). Both ratings remain under review with negative implications.
In July 2012, A.M. Best placed the ratings under review with negative implications, reflecting a potential dispute between Civic Assurance and one of its reinsurers. The company’s prospective risk-adjusted capitalization could be stressed by the possibility of some of its reinsurance recoverable balances being uncollectible.
Subsequently, A.M. Best has reviewed more information provided by Civic Assurance. Despite a fall in its reinsurance recoverable balance over the past six months, the ratings remain under review as the balance is still sizable relative to the
company’s capital position.
A.M. Best will revisit the under review status once there is less uncertainty surrounding Civic Assurance’s reinsurance counterparty risk.
Negative rating actions could occur if there is a sizable decrease in Civic Assurance’s net assets.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M.
Best’s rating process and contains the different rating criteria employed in the rating process. Key criteria utilized include.
“Catastrophe Analysis in A.M. Best Ratings” and “Understanding Universal BCAR.” Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology : cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww ..
Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com : cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww ..
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