AM Best Affirms Fidelity Life Assurance Credit Ratings As Excellent

KUALA LUMPUR, March 6 (Bernama) -- AM Best has affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit rating of “a-” (Excellent) of New Zealand’s Fidelity Life Assurance Company Limited (Fidelity Life Assurance).

The outlook of these credit ratings (ratings) is stable, reflecting Fidelity Life Assurance’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

Fidelity Life Assurance’s balance sheet strength assessment is underpinned by its risk-adjusted capitalisation, which was at its strongest level as of fiscal year end (June 30) 2025, as measured by Best’s Capital Adequacy Ratio.

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According to AM Best in a statement, the company has a robust capital management strategy that supports an appropriate regulatory solvency position, as well as the maintenance of risk-adjusted capitalisation at the strongest level over the medium term.

Additionally, AM Best views Fidelity Life Assurance as having good financial flexibility, supported by its two largest shareholders, NZ Superannuation Fund and Ngāi Tahu Holdings Corporation Limited.

The credit rating agency assesses Fidelity Life Assurance’s operating performance as adequate, with positive earnings recorded in most of the last five years (fiscal years 2021 to 2025) and for the first half of fiscal year 2026, driven by robust insurance services as a result of the in-force life insurance portfolio, supported by pricing discipline.

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In fiscal year 2025, Fidelity Life Assurance recorded a return-on-equity ratio of 6.4 per cent with a net investment yield of 5.1 per cent, and AM Best expects the company’s operating performance metrics to remain supportive of the adequate assessment over the medium term.

Ranked among the largest life insurance companies in New Zealand, Fidelity Life Assurance’s product offerings include term life, disability income, trauma and total permanent disability insurance, with a legacy portfolio of investment-linked and traditional participating policies. 

-- BERNAMA