Fidelity has kept its rating in its latest annual review
AM Best has affirmed the Financial Strength Rating of A- with a stable outlook.
Tuesday, March 25th 2025, 8:05AM
In its report the ratings agency says Fidelity’s balance sheet is very strong, and it has adequate operating performance, a neutral business profile and appropriate enterprise risk management.
AM Best views Fidelity Life Assurance as having good financial flexibility, supported by its two largest shareholders, NZ Superannuation Fund and Ngāi Tahu Holdings. A partially offsetting balance sheet strength factor is Fidelity Life Assurance’s moderate reliance on third-party reinsurance.
The company’s operating performance is adequate.
“The company typically recorded positive earnings over the last five years, despite elevated operating expenses arising from system infrastructure investment, as well as the acquisition of Westpac Life-NZ-Limited (subsequently renamed to Fidelity Insurance Limited) in recent years,” AM Best says.
“In fiscal-year 2024, Fidelity Life Assurance recorded a return-on-equity ratio of 5.9% with a net investment yield of 5.6%.” AM Best expects the company’s operating performance metrics to remain supportive of the adequate assessment over the medium term.
Fidelity Life chief financial officer Simon Pennington says “this A- rating from AM Best is a reassuring endorsement of our business's financial health and stability.”
“As a life insurer, this independent assessment gives advisers confidence in partnering with us, and for customers, it ensures peace of mind in our ability to pay claims.
“It’s a strong foundation for us to keep growing for the good of New Zealand and supporting New Zealanders when they need us most.”
| « nib launch dates announced |
Special Offers
Comments from our readers
No comments yet
Sign In to add your comment
|
|
Printable version |
|
Email to a friend |
