Kiwi insurers unscathed by Covid-19, S&P says

It said local health insurers have an intermediate risk and life insurance sectors a low risk.

“Despite the challenges of Covid-19, insurers are supported by the country's stable economy, which has seen domestic business restrictions lifted since June following a swift lockdown to manage the pandemic,” S&P said.

“While international borders are likely to remain closed for some time, we expect domestic activity to support moderate top-line growth in 2020, followed by a strong rebound in 2021. We view the effective management of the pandemic crisis and absence of any second wave to date, with outbreaks observed in neighbouring Australia, as beneficial for New Zealand insurers.

“The credit quality of New Zealand insurers is supported by strong capital buffers and conservative investment policies, with sound reinsurance from highly rated counterparties.”