KUALA LUMPUR, May 16 (Bernama) -- Global credit rating agency, AM Best has affirmed the financial strength rating of B+ (Good) and the long-term issuer credit rating of “bbb-” (Good) of New Zealand’s Pinnacle Life Limited (Pinnacle Life).
The stable outlook of these credit ratings (ratings) reflects Pinnacle Life’s balance sheet strength, which AM Best assesses as adequate, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
AM Best in a statement said the ratings also factored in a neutral impact from the company’s ultimate parent, Greenstone Holdco Pty Limited (Greenstone).
Pinnacle Life’s balance sheet strength is underpinned by its risk-adjusted capitalisation, which was at the strongest level at fiscal year-end 2024, as measured by Best’s Capital Adequacy Ratio, and is expected to remain at that level over the medium term.
The company’s balance sheet strength assessment also reflects its appropriate regulatory solvency and good financial flexibility, supported by Greenstone.
Additionally, the balance sheet strength assessment has factored in Pinnacle Life’s high reliance on third-party reinsurance and small capital base, which increase the sensitivity of its capital adequacy to outsized new business growth, changes in the interest rate environment, and shock events.
With operating performance assessed as adequate, Pinnacle Life’s operating results have been driven by the adequate underwriting performance of its in-force life business and healthy investment returns.
Meanwhile, its business profile was assessed as limited, largely reflecting the company’s small scale of operations and its low product and geographic diversification in New Zealand, as key product offerings are focused on mortality products.
While AM Best considers Pinnacle Life’s risk management capabilities as appropriate for its key risks, ongoing development is expected as the company expands its scope of operations.
-- BERNAMA
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