A.M. Best Places Ratings of Fidelity Life Assurance Company Limited Under Review [Professional Services Close – Up]

A.M. Best Asia-Pacific Limited has placed under review with negative implications the financial strength rating of A- (Excellent) and issuer credit rating of "a-" of Fidelity Life Assurance Company Limited (Fidelity Life) (New Zealand).

The rating actions follow Fidelity Life's acquisition of certain in-force business of TOWER Health & Life Limited and TOWER Life (N.Z.) Limited.

Fidelity Life has funded this transaction through a combination of a full risk transfer reinsurance agreement as well as some proceeds from disposing its KiwiSaver scheme. However, following Fidelity Life's acquisition, future new business growth is expected to be higher than previously budgeted. While Fidelity Life has initiated various measures to alleviate the impact of future new business strains, the net effect on its prospective financial strength remains to be assessed until the company's updated financial results and projections become available.

A.M. Best expects the under review status to be resolved after Fidelity Life provides more information for A.M. Best to review.

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: ambest.com/ratings/methodology.

A.M. Best Company is an insurance rating and information source.

((Comments on this story may be sent to newsdesk@closeupmedia.com))