AM Best has affirmed the A- (excellent) financial strength rating of New Zealand-based CBL Insurance and says the company’s outlook is stable.

CBL’s underwriting performance over the past five years has remained very strong, with an average combined operating ratio of about 80%. Net premium revenue increased at an average annual rate of more than 30%, according to the ratings agency.

“The favourable underwriting experience largely reflects the company’s growing access to a book of less volatile builders’ warranty business,” AM Best says.

CBL, which also retains its “a-” long-term issuer credit rating, has a favourable liquidity position and is not considered highly dependent on reinsurance.

AM Best says the insurer’s geographic concentration is an “offsetting factor”, with a large majority of its premiums derived from Europe, particularly France.

CBL Insurance is the main operating subsidiary of listed company CBL Corporation.