Standard & Poor’s (S&P) has released updated ratings for 11 large insurance companies in the Asia-Pacific region, with most assessments affirmed under the agency’s new criteria.

IAG’s core operating subsidiaries had their financial strength rating affirmed at AA- with a stable outlook.

The non-operating holding company, Insurance Australia Group, was reduced from A+ to A, in line with new criteria that state holding companies must be two notches below core operating entities.

IAG’s impressive business and financial risk profile and “strong competitive position” were noted by S&P.

“It owns and has access to a number of iconic brands across Australia and New Zealand via direct channels, car dealer affinity and longstanding intermediated brands,” the agency says.

“It enjoys the No 2 position in the Australian market and No 1 in New Zealand across direct and intermediated operations in both personal lines and commercial lines.

“Some geographic diversity is emerging outside Australia and New Zealand into the growth markets of Asia, while the troublesome UK operations have been recently sold.”

IAG CFO Nick Hawkins says the ratings are “a valuable independent assessment”.

“Our core operating subsidiaries have commanded an AA-category rating since 1991.”

Suncorp’s core operating subsidiaries had their financial strength rating affirmed at A+ with a stable outlook.

Its non-operating holding company SGL was affirmed at A; this is only one notch lower, because its banking operations are expected to contribute more than 25% of operating income in the next two to three years.

S&P says Suncorp benefits from “diversity of income streams, economies of scale and operational and customer linkages across its businesses”.

QBE Lenders’ Mortgage Insurance had its financial strength rating affirmed at AA-. Its outlook was revised from negative to stable, in line with QBE.

S&P’s new criteria, which took effect on May 7, aim to provide more consistent, transparent ratings.