CBL Insurance will pursue opportunities in Australia and southeast Asia following a ratings boost from AM Best.

Last week the ratings agency upgraded CBL from B++ (good) to A- (excellent), and its issuer credit rating was upgraded from bbb to a-.

MD Peter Harris says the upgrade will “result in access to some additional opportunities in Australia and southeast Asia that had been targeted for some time”.

Last year the Auckland-based company bought Australian specialist insurer Assetinsure and listed on the New Zealand and Australian stock exchanges.

AM Best says the initial public offering of parent company CBL Corporation “vastly improved the insurance group’s financial flexibility”.

“The ratings actions reflect significant improvement in CBL’s capital position and risk-adjusted capitalisation… due to continued strong earnings and additional capital contributions from its parent company,” the agency says.

CBL Chairman John Wells says the ratings upgrade is a significant achievement and “an excellent reflection of CBL Corporation’s listing in October [last year], and its access to the New Zealand and Australian capital markets”.