AM Best announced that Fidelity Life’s A- financial strength rating was under review after the upcoming purchase of Westpac Lie was announced last year. AM Best has confirmed that Fidelity Life’s A- rating will remain. Fidelity Insurance’s Standard & Poor (Australia) Pty Limited lowered after the sale, although Fidelity Insurance will be rated by AM Best going forward.
“Fidelity Life and its newly acquired subsidiary Fidelity Insurance (formerly Westpac Life) have both received A- (Excellent) financial strength ratings* from ratings agency AM Best, following the completion of the $400 million acquisition earlier this week. The outlook for the ratings is stable.
According to AM Best the ratings reflect each entity’s respective ‘very strong’ balance sheets, adequate operating performances, neutral business profiles and appropriate enterprise risk management.
Fidelity Life has maintained an A- (Excellent) financial strength rating from AM Best for 26 consecutive years. The rating had been under review since July 2021 when the acquisition was announced.
Fidelity Group Chief Financial Officer Simon Pennington says: “These ratings are important information for our customers – including our customers from Westpac Life - because they provide an expert view of our ability to pay their claims.”
Fidelity Insurance has had its Standard & Poor (Australia) Pty Limited rating lowered from A+ with a negative outlook to A with a stable outlook, reflecting its ownership change from the Westpac Group to Fidelity Life. From April 2022 Fidelity Insurance will only be rated by AM Best."
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