CGNU (sorry, Aviva)-owned New Zealand Insurance has been downgraded by Standard and Poor’s from AA to AA- with a negative outlook. The downgrading followed a change in S&P’s “group methodology” which limits the amount of support provided to an important subsidiary to within one notch of the parent.

But S&P’s offered some support for the NZ company, saying that despite the downgrade caused by a change in criteria, it has a strong market position in its chosen niches. Its ability to influence pricing, its large distribution network, wide range of products and strong management should ensure its strong performance, Standard & Poor’s said.