Tuesday, 26 September 2017

A.M. BEST COMMENTS ON CREDIT RATINGS OF SOVEREIGN ASSURANCE COMPANY LIMITED

SINGAPORE, Sept 25 (Bernama-BUSINESS WIRE) -- A.M. Best has commented that the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Rating of “aa-” of Sovereign Assurance Company Limited (Sovereign) (New Zealand) remain unchanged following the announcement that the company will be acquired. The outlook of these Credit Ratings (ratings) remains stable.
 

This commentary follows the Sept. 21, 2017, announcement from Sovereign’s ultimate parent, Commonwealth Bank of Australia, that it will sell 100% of its life insurance business in Australia and New Zealand to AIA Group Limited (AIA) (Hong Kong). The sale agreement also includes a 20-year partnership with AIA for the provision of life insurance products to customers in Australia and New Zealand.

The transaction remains subject to regulatory approval and is expected to close in 2018. A.M. Best will continue to monitor the progress of the acquisition and evaluate developments for any impact on the ratings.

Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.

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