FMG Insurance Credit Ratings Affirmed

KUALA LUMPUR, Jan 30 (Bernama) -- A.M. Best has affirmed the financial strength rating of A (excellent) and the long-term issuer credit rating of “a” of FMG Insurance Ltd. (FMGIL) New Zealand and the outlook of these ratings is stable. In a statement, A.M. Best said the ratings reflected FMGIL’s balance sheet strength, categorised as very strong, and its adequate operating performance, neutral business profile and appropriate enterprise risk management. It said the ratings also reflected FMGIL’s modest underwriting leverage, prudent capital management policy and direct distribution network capability. As it has less geographic risk concentration proportionally relative to its peers, FMGIL is able to maintain adequate catastrophe protection, while keeping reinsurance costs affordable. FMGIL’s operating results in fiscal years 2016 and 2017 took a downturn, primarily due to claims costs from multiple weather events along with the impact of the Kaikoura earthquake in November 2016. In response to the downturn, the company has implemented price increases across business lines, and prospective underwriting results are expected to improve. -- BERNAMA