Credit rating agency AM Best has made no changes to Hollard’s financial strength and credit rating, with the insurer retaining an “A-” or “excellent” score.

The agency says Hollard’s outlook remains “stable” after its parent company, Hollard Holdings Australia, acquired Commonwealth Insurance on September 30.

The deal, announced in June last year, appointed a 15-year partnership between the insurer and Commonwealth Bank to allow Hollard to distribute home and motor products to Commonwealth customers. The agreement also saw Commonwealth Insurance renamed to Hollard Insurance Partners.

AM Best says it expects Hollard’s pro-forma consolidated risk-adjusted capitalisation to decline following the acquisition due to an increase in “combined underwriting risks” and “intangible assets”.

The rating agency says it expects the risks to be managed at a “very strong level” over a medium period. It does not expect existing future debts to lead to any “undue pressure” for Hollard’s dividends.