S&P Global Ratings has lifted its outlook on MLC to stable from negative, based on the life insurer’s robust capitalisation and solid operating performance.

The ratings agency says Nippon Life Insurance, which acquired MLC from NAB last year, is likely to remain supportive from a financial and business risk perspective.

“We continue to view MLC as strategically important to Nippon Life,” it says.

S&P has affirmed its A+ insurer financial strength and issuer credit ratings on the insurer, partly underpinned by its established market position.

“MLC’s current reinsurance and investment strategies do not detract from our assessment of its creditworthiness,” S&P says. “We also anticipate that the insurer will successfully implement the significant systems and process upgrades currently under way.”