KUALA LUMPUR, March 30 -- AM Best has affirmed the Financial Strength Rating of B+ (good) and the Long-Term Issuer Credit Rating of ‘bbb-’ of New Zealand Medical Professionals Limited (NZMPL) New Zealand.
In a statement, AM Best said the outlook of these ratings was stable.
The ratings reflect NZMPL’s balance sheet strength, which AM Best categorised as adequate, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
NZMPL’s balance sheet strength is underpinned by its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio, which remains at the strongest level.
In addition, the balance sheet is supported by the reinsurance programme placed with a highly rated counterparty, which is designed to protect NZMPL from exposure to elevated claims.
AM Best considers the company to have limited financial flexibility, with a dependence on shareholders for financial support, if needed.
Prospective risk-adjusted capitalisation is also dependent on NZMPL’s ability to retain earnings, which is driven by its underwriting performance and investment income, as well as level of dividend distribution.
NZMPL is a small and niche insurer in New Zealand that focuses on providing medical indemnity insurance to medical practitioners and health professionals. The company’s claims consist largely of legal fees, as most medical injury costs are covered by the Accident Compensation Corporation in New Zealand.
-- BERNAMA
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