A.M. Best Upgrades Ratings of Union Medical Benefits Society Limited

SINGAPORE--(BUSINESS WIRE)-- A.M. Best has upgraded the financial strength rating to A (Excellent) from A- (Excellent) and the issuer credit rating to “a” from “a-” of Union Medical Benefits Society Limited (UniMed) (New Zealand). The outlook for both ratings is stable.

The upgrade reflects UniMed’s excellent risk-adjusted capitalization, continued favorable operating earnings and balanced investment portfolio, which has enabled it to consistently grow its capital and surplus. The rating action also recognizes the company’s progress in improving its underwriting results, consistently low expense ratio and stable business growth, while maintaining a low underwriting leverage and strong balance sheet. In addition, contributions from the relatively large investment portfolio of UniMed to its premium size enable the company to keep claims ratio competitive while maintaining strong operating results.

Partially offsetting these positive rating factors are certain concentration risks in UniMed’s group business segment. A.M Best also takes into account that while management pursues non-organic growth opportunities, potential acquisition activities could place UniMed’s risk-adjusted capitalization under pressure.

UniMed is well placed at its current rating levels. A.M. Best believes that positive rating actions for UniMed are unlikely in the near to medium term. However, the ratings could be lowered as a result of a material negative deviation in terms of operating earnings, risk-adjusted capitalization or business profile.

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.

View source version on businesswire.com: http://www.businesswire.com/news/home/20150624006366/en/

Larina Huang, +65-6589-8400, ext. 218
Associate Financial Analyst
[email protected]
or
Chi-Yeung Lok, +65-6589-8400, ext. 217
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, Inc.

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