NZ insurer hit with credit rating downgrade
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.