OnePath have sent out the following media release in regards to a downgrade in their financial stability rating:
"We just wanted to let you know that we have been advised that Standard & Poor’s is downgrading the financial strength rating of a number of insurers, including OnePath Life (NZ) Limited (OPL).
In total, Standard & Poor’s has downgraded the ratings for eight insurers, all of them subsidiaries of major Australian banks. This means that OPL’s current rating of AA- will drop one notch to A+.
Your clients should not be concerned by this and it will not have any impact on our day-to-day operations. It’s important to note that Standard & Poor’s clearly states that its move does not indicate any weakening of the stand-alone ratings of these insurers. Standard & Poor’s is responding to the recent sale of insurance businesses by some Australian banks in the past year, as well as increasing regulatory requirements on capital.
We are in the process of updating application forms, quote and collateral that contains reference to the financial strength rating. We will advise when this updated material is available. In the meantime, we ask that you let any clients in the process of signing up for cover that OnePath’s financial strength rating has changed."