A.M. Best Affirms Ratings of Health Services Welfare Society Limited

SINGAPORE--(BUSINESS WIRE)-- A.M. Best has affirmed the financial strength rating of B (Fair) and the issuer credit rating of “bb+” of Health Services Welfare Society Limited (New Zealand), trading as Accuro Health Insurance (Accuro). The outlook for both ratings remains stable.

This affirmation reflects Accuro’s good business profile in New Zealand’s retail medical insurance sector, favorable growth and the experience of its current product offerings (launched since 2010), as well as its low investment risk profile.

Partially offsetting these positive factors are the high underwriting leverage and less favorable experience of its legacy and group products.

Accuro’s net premium written remained in excess of three times capital, which leaves the level of capitalization very sensitive to higher-than-expected claim severity or frequency. Despite the favorable experience on products launched since 2010, the company’s legacy products, which still represent over half of overall premium earned, consistently experience high claims ratios.

An upgrading of the company’s ratings is unlikely in the short to medium term until it can demonstrate a solid track record of positive operating results. Meanwhile, any significant adverse changes to its industry environment or continued underwriting losses could lead to a downgrading of its 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 www.ambest.com/ratings/methodology.

Key insurance criteria reports utilized:

• Risk Management and the Rating Process for Insurance Companies
• 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.

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A.M. Best

Larina Huang, +65-6589-8400, ext. 218

Associate Financial Analyst

[email protected]

or

Jason Shum, +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.