FSC: correlation between finances and mental health, and more daily news
Legal and regulatory update for the life and health insurance sector

Fidelity Life ratings under review, and more daily news

It has been reported that the A- (excellent) Financial Strength Rating and the A- (excellent) Long-Term Issuer Credit Rating are under review. This is a normal development in the case of substantial acquisitions. AM Best's decision comes after it was announced that Fidelity Life is set to purchase Westpac Life. AM Best have applied an "under review" status with developing implications status on Fidelity Life’s ratings to assess the financial and operational impacts the purchase will have on Fidelity Life. The rating status will remain in place until the purchase is complete, and AM Best is able to conduct an assessment of Fidelity’s credit rating fundamentals. Click here to read more

“SINGAPORE--(BUSINESS WIRE)--AM Best has placed under review with developing implications the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Fidelity Life Assurance Company Limited (Fidelity Life) (New Zealand).

These Credit Ratings (ratings) actions follow the announcement on 6 July 2021, that Fidelity Life has entered into an agreement with Westpac Banking Corporation to acquire its New Zealand life insurance business, Westpac Life-NZ-Limited for NZD 400 million. The transaction also includes the establishment of an exclusive 15-year life insurance distribution arrangement with Westpac New Zealand Limited.

Concurrently, Fidelity Life has announced an equity investment of NZD 140 million from a new investor, Ngāi Tahu Holdings Corporation Limited (Ngāi Tahu Holdings), to fund the acquisition partly. Fidelity Life’s current largest shareholder, the New Zealand Superannuation Fund, and Ngāi Tahu Holdings are expected to fund the majority of the acquisition.

The transactions, which are subject to customary closing conditions, including shareholder and regulatory approvals, are expected to be completed by the end of 2021.

The under review with developing implications status reflects the need for AM Best to assess fully the financial and operational impacts of the acquisition and the funding structure on Fidelity Life’s rating fundamentals, including on its balance sheet strength and business profile.

The ratings will remain under review pending completion of the acquisition, and until AM Best can complete its assessment of Fidelity Life’s post-acquisition credit rating fundamentals.”

In other news

nib: nib Health Insurance Protect, Connect & Empower Seminar Series held in Christchurch and Auckland Central

ACC: ACC steps up efforts to support children and sexual abuse survivors

Fidelity Life: Bronwyn Kirwan is set to join Fidelity Life next month as the new Chief Sales and Service Officer

Comments

Feed You can follow this conversation by subscribing to the comment feed for this post.

The comments to this entry are closed.