SINGAPORE, May 16 – AM Best has affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” (Good) of New Zealand Medical Indemnity Insurance Limited (NZMII) (New Zealand). The outlook of these Credit Ratings (ratings) is stable. The ratings reflect NZMII’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 (ERM).
NZMII’s balance sheet strength is bolstered by risk-adjusted capitalization at the strongest level, with a conservative investment portfolio. Despite its small capital base, NZMII has taken steps to improve its operating performance, with positive earnings supported by healthy investment income. However, its business profile remains limited due to its niche focus on medical indemnity insurance in New Zealand. Nevertheless, its enterprise risk management is deemed appropriate, with measures in place to mitigate key risks such as the disestablishment of district health boards.
