Pinnacle Life gets a rating

The rating agency has assigned a financial strength rating of B (Fair) and an issuer credit rating of "bb+" to The Pinnacle Life Insurance Partnership. The outlook assigned to both ratings is stable.

The assigned ratings reflect Pinnacle's direct distribution capabilities, comparatively low lapse ratios and favorable reinsurance arrangements, AM Best says.

Pinnacle mainly underwrites simple life insurance in the no-frills term life segment of the New Zealand market, relying primarily on direct distribution.

The company's direct distribution capabilities have been enhanced by its online underwriting platform, which generated the majority of its new policies in the past five years. Growing at around 21% annually, Pinnacle's gross written premiums outpaced the market in the five years to March 31, 2012 (according to unaudited accounts).