Brought to you by:

NZ insurer hit with credit rating downgrade

Facebook Twitter LinkedIn Google

AM Best has lowered its credit rating for New Zealand niche insurer Consumer Insurance Services.

The BBB rating, while stable, is a result of a significant dividend payout in the first quarter of this year which reduced the company’s solvency margin level.

A solvency margin level is similar to a capital adequacy requirement for banks.

Given the volume of risks Consumer Insurance Services underwrites and retains, its capital requirements are relatively modest, the ratings agency says.