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A.M. Best Removes Ratings of Fidelity Life Assurance Company Limited From Under Review

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© Business Wire 2014
2014-02-13 18:02:03 -

A.M. Best has removed from under review with negative implications and affirmed the financial strength rating of A- (Excellent) and issuer credit rating of “a-” of Fidelity Life Assurance Company Limited (Fidelity Life) (New Zealand). The outlook assigned to both ratings is stable.

The affirmation of Fidelity Life’s ratings reflects its adequate risk-adjusted capitalization, continued operating profitability and high earnings retention.

In August 2013, Fidelity Life's ratings were placed under review with negative implications, following the company's announcement to acquire certain in-force business of TOWER Health & Life Limited and TOWER Life (N.Z.) Limited.

Subsequently, A.M. Best reviewed Fidelity Life's latest financial condition, key sensitivities and capital management plan and believes that the company’s post-acquisition risk-adjusted capitalization will remain supportive of the

current ratings.

The key offsetting factor is the impact of competitive pressures on Fidelity Life, which may result in a greater lapse of policies than expected and/or smaller premium increases than anticipated.

Upward rating movement is unlikely in the medium term. Negative rating actions may occur if there is a material deviation from Fidelity Life’s target solvency capital. Additionally, any significant deterioration in the lapse or expense experiences could put negative pressure on the ratings.

The methodology used in determining these interactive 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. Best’s Credit Rating Methodology can be found at : .. .

Ratings are communicated to rated entities prior to publication, and unless stated otherwise, the ratings were not amended subsequent to that communication.

This rating announcement has been issued by A.M. Best Asia-Pacific Limited, which is a subsidiary of A.M. Best Company. A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit : .. .

Copyright © 2014 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

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A.M. Best CompanyJason Shum, +852-2827-3430Financial
Analyst : orKen

Chow, +852-2827-3426Senior Financial Analyst : orRachelle
Morrow, +(1) 908-439-2200, ext. 5378Senior Manager, Public
Relations : orJim

Peavy, +(1) 908-439-2200, ext. 5644Assistant Vice
President, Public Relations :

Hossam Abdel-Kader
Phone: +43 1 9582319

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