Standard & Poor’s (S&P) has affirmed its “A” issuer credit rating for IAG, and raised its financial strength and issuer credit ratings for subsidiary WFI Insurance to AA- from A+.

The latter move reflects a revised assessment of the rural, business and strata insurer from “highly strategically important” within the IAG group to “core”.

WFI started in 1919 but has only been an IAG business since 2014.

The outlook for all other core IAG operating subsidiaries has been reaffirmed at AA-.

These include Insurance Australia, CGU Insurance, Swann Insurance Australia, IAG New Zealand, IAG Re Australia, IAG Re Singapore and IAG Re Labuan (L) Berhad.

S&P says the ratings affirmations are based on the group’s “very strong” business and financial risk profiles.

“We believe the group has broadly maintained its very strong competitive position in its key non-life portfolios in Australia and New Zealand, benefitting from positive brand differentiation and leading market shares in product lines we consider significant,” the ratings agency says.

“While IAG’s commercial lines revenue has contracted over the last calendar year due to intense competition, it has maintained its leading market position in Australia and New Zealand, with good levels of retention and recently implemented modest price increases in Australia.”