Credit rating of FMG Insurance Ltd affirmed

KUALA LUMPUR, Jan 28 (Bernama) -- Insurance industry global credit rating agency, AM Best, has affirmed the Financial Strength Rating of A (excellent) and Long-Term Issuer Credit Rating of ‘a’ for FMG Insurance Ltd (FMGIL), New Zealand. FMGIL’s strong balance sheet is underpinned by its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), which AM Best expects to remain at the strongest level over the medium term, a statement today said. AM Best also views FMGIL’s operating performance as adequate, with the company having generated a five-year average return on equity ratio of 4.5 per cent (fiscal years 2014-2018). Besides this, the rating agency considers FMGIL’s business profile as neutral with the company continuing to benefit from its position as a leading rural insurer in New Zealand, albeit occupying a relatively small overall market share of 5 per cent, based on 2018 non-life gross written premiums. FMGIL’s enterprise risk management (ERM) framework is deemed to be developed by AM Best, and its approach to managing key risks as appropriate given the size and complexity of the company. For more details, visit www.ambest.com. -- BERNAMA