AM Best Comments on Credit Ratings of Consumer Insurance Services Limited

SINGAPORE--(BUSINESS WIRE)--
AM Best has commented that the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” (Good) of Consumer Insurance Services Limited (CISL) (New Zealand) remain unchanged following the recent announcement that humm group limited (Humm group), the ultimate parent of CISL, has entered into a binding agreement to sell its consumer finance business to Latitude Group Holdings Limited. The transaction remains subject to shareholder and regulatory approvals.

Humm group’s consumer finance business comprises its “buy now pay later”, installment and credit card operations in Australia and New Zealand. CISL provides credit card repayment protection insurance for Humm group’s New Zealand cardholder customers.

CISL’s rating fundamentals are currently not expected to be impacted by the transaction. CISL’s insurance operations are presently in run-off. The company’s prior decision to cancel all existing card repayment insurance policies from 1 July 2022, and its target to relinquish its insurance licence in early 2023, are expected to remain unchanged. However, AM Best will continue to monitor the progress of the transaction and consider any impact on CISL’s rating fundamentals going forward.

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 AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Yi Ding

Senior Financial Analyst

+65 6303 5021

yi.ding@ambest.com

Myles Gould
Director, Analytics

+44 207 397 0304

myles.gould@ambest.com

Christopher Sharkey
Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.com

Jim Peavy
Director, Communications

+1 908 439 2200, ext. 5644

james.peavy@ambest.com

Source: AM Best