Rating agency AM Best has upgraded the financial strength rating (FSR) of Kiwi insurer CBL Insurance from ‘B++’ (Good) to ‘A-‘ (Excellent) and its issuer credit rating from ‘bbb’ to ‘a-‘. The outlook for each rating remains stable.
In its report, AM Best noted: “The ratings actions reflect significant improvement in CBL’s capital position and risk-adjusted capitalisation in 2015, due to continued strong earnings and additional capital contributions from its parent company. In addition, the initial public offering of its ultimate parent company, CBL Corporation Limited (CCL), which occurred in October 2015, has vastly improved the insurance group’s financial flexibility.”
CBL chairman Sir John Wells said the ratings upgrade was a significant achievement for the Auckland-based company, which just last year had been successfully listed on the New Zealand and Australian stock exchanges.
“AM Best’s upgrade of CBL Insurance’s financial strength rating was an excellent reflection of CBL Corporation’s listing in October 2015, and its access to the New Zealand and Australian capital markets.”
, group managing director, commended the hard work and dedication of CBL’s management and staff, the board and key business partners, and in particular, the quality and consistency of its underwriting management and its financial information.
Harris said the rating upgrade will give the firm access to additional opportunities in Australia and Southeast Asia.
CBL Insurance Limited, NZ’s largest and oldest credit surety and financial risk provider, is the main operating subsidiary of CBL Corporation Insurance Group of Companies.