A.M. Best Affirms Ratings of Consumer Insurance Services Limited

SINGAPORE--(BUSINESS WIRE)-- A.M. Best has affirmed the financial strength rating of B++ (Good) and the issuer credit rating of “bbb+” of Consumer Insurance Services Limited (CISL) (New Zealand). The outlook for both ratings is stable.

CISL offers payment protection covers on consumer credit receivables originated by Fisher & Paykel Finance Holdings Limited Group entities.

The affirmation of the ratings reflects CISL’s adequate risk-adjusted capitalization and consistently strong operating performance.

CISL currently holds a modest amount of capital above its local regulatory capital requirements. An evaluation of its risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), also shows that the company’s capitalization remains supportive of its current ratings. Claims experience has been fairly stable and favorable, which is typical of the types of loan and card repayment insurance contracts that it writes. The company also invests conservatively, which helps it generate a stable stream of interest income without taking significant credit and market risk.

The key offsetting rating factor is CISL’s modest capital size, small in-force portfolio and high dividend payout ratio.

CISL is well-positioned at its current rating level. The ratings could be downgraded if its local regulatory solvency margin falls below the company’s projection provided to A.M. Best due to higher-than-expected dividend payout or if the company fails to maintain its strong and consistent operating performance.

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 www.ambest.com/ratings/methodology.

Key insurance criteria reports utilized:

• Evaluating Non-Insurance Ultimate Parents
• Understanding Universal BCAR

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

This press release relates to rating(s) that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best’s Ratings & Criteria Center.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2015 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

A.M. Best Company
Jason Shum, +65-6589-8400, ext. 217
Financial Analyst
[email protected]
or
Chi-Yeung Lok, +65-6589-8400, ext. 211
Senior Financial Analyst
[email protected]
or
Christopher Sharkey, +(1) 908-439-2200, ext. 5159
Manager, Public Relations
[email protected]
or
Jim Peavy, +(1) 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
[email protected]

Source: A.M. Best Company

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