IAG rating outlook remains negative
Fitch Ratings has affirmed IAG and IAG NZ’s insurer financial strength ratings at AA- and their outlook as negative.
The ratings agency says it originally placed IAG’s ratings on negative outlook in July last year to reflect its “declining operational performance and poor strategic execution”.
Fitch has blamed the continuing negative outlook on the group’s $457 million in write-offs and restructuring costs in the 18 months to the end of last year, and numerous senior management changes.
“With IAG’s focus now more firmly placed on its core markets, recent operational and expense initiatives combined with solid rate increases should support future results,” Fitch said.
It will review the ratings once full year numbers are reported for this financial year.
The ratings agency says it originally placed IAG’s ratings on negative outlook in July last year to reflect its “declining operational performance and poor strategic execution”.
Fitch has blamed the continuing negative outlook on the group’s $457 million in write-offs and restructuring costs in the 18 months to the end of last year, and numerous senior management changes.
“With IAG’s focus now more firmly placed on its core markets, recent operational and expense initiatives combined with solid rate increases should support future results,” Fitch said.
It will review the ratings once full year numbers are reported for this financial year.