Chartis NZ has become the first New Zealand insurer to be fully licensed by the Reserve Bank under the country’s new supervisory regime.

The company has restructured, transferring its ownership to a local business, Chartis Insurance New Zealand Ltd, after previously operating under its global parent, American Home Assurance Co, which is ultimately owned by American International Group (AIG).

To reflect the change, Standard & Poor’s (S&P) has converted its rating from a branch to a subsidiary within the Chartis group and given Chartis NZ A- financial strength and issuer credit ratings with a stable outlook.

S&P says the ratings reflect the company’s strong financial structure “and our expectations of continued implicit support from its strong parent and related entities”.

Analyst Lucy Huynh says moderating features to the ratings include Chartis NZ’s modest competitive position and weak operating performance under difficult market conditions, but she says the New Zealand business is strategically important to the Chartis group.

Chartis NZ CEO Cris Knell says the new corporate structure will bring decision-making closer to customers and is part of a global initiative to offer policyholders local empowerment.

“It’s been a positive process with the Reserve Bank,” he told insuranceNEWS.com.au. “They’ve shown a lot of flexibility and understanding to get us to the point of bringing the new company to the market.”

The New Zealand operation will join the group’s other Asia-Pacific operations in reporting to Chartis Singapore.