A.M. Best Affirms Credit Ratings of New Zealand Medical Professionals Limited
The ratings reflect NZMPL’s balance sheet strength, which
NZMPL’s balance sheet strength is supported by solid risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). However, the company’s capital size is small compared with similar insurers rated by
NZMPL has a track record of strong underwriting performance and stable investment income, with a five-year average operating ratio of 49%. This is driven mainly by its favorable claims experience due to the underlying product risk profile and low average claims size. The company also benefits from a competitive expense ratio by offering its products through an affiliation with the New Zealand Resident Doctors’ Association. Prospectively,
NZMPL is a small-sized insurer in
NZMPL has some exposure to operational risk. The company has outsourced most of its operations to third-party service providers due to its small scale. A lack of oversight and management controls creates the major risk associated with this outsourcing. Hence, the company’s risk management capabilities are not aligned with its risk profile.
NZMPL is well-positioned for its current rating level. Negative rating actions may occur if there is significant deterioration in NZMPL’s operating results due to adverse claims experience or if capitalization erodes significantly below its target surplus capital due to factors such as higher-than-expected dividend payouts.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
This press release relates to Credit Ratings 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 see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and
Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180322005872/en/
Associate Financial Analyst
[email protected]
or
Associate Director, Analytics
[email protected]
or
Manager, Public Relations
[email protected]
or
Director, Public Relations
[email protected]
Source:
Data on Geriatrics and Gerontology Described by J. Stypinska et al (Gender, age and migration: an intersectional approach to inequalities in the…
Indexed Annuity Sales See First Year-Over-Year Drop In Decade
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News