Rating agency A.M. Best has upgraded the outlook of Beneficial Insurance Limited (BIL) New Zealand to stable from positive. Its financial strength rating was revised from “B+” to “B++” and its long-term issuer credit rating from “bbb-” to “bbb.”

The ratings reflect BIL’s adequate balance sheet strength, strong operating performance and low product risk profile. A.M Best said BIL has significantly reduced its exposure to illiquid assets while improving its underwriting results over the past five years.

“The exposure to illiquid assets relative to capital size has been reduced to 28% in fiscal year 2017 from 97% in fiscal year 2013, which has resulted in a more favourable liquidity position and higher quality of capital,” the rating firm said.

According to A.M Best, the company’s underwriting leverage remained conservative, and it continues to focus on a high-frequency, low-severity lines of business.

A.M Best went on to say that BIL is well-positioned at its current rating level and that the company has a strong performance track record, with a five-year average operating ratio of 86%.


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