Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Sovereign retains A+ financial strength rating

Sovereign retains A+ financial strength rating

Sovereign has again been awarded an A+ (Superior) grade from international credit-rating agency A.M. Best Company Inc (‘A.M. Best’)[1] <#_ftn1> , on the strength of its market-leading financial position and performance.

The rating is the highest awarded to any New Zealand-based insurer, and Sovereign is the only life insurer in the country to hold an A+ result, A.M. Best’s second-highest possible rating.

“Naturally, we are very pleased with the results of A.M. Best’s evaluation, though we had expected to retain our high rating,” says Sovereign’s General Manager of Marketing and Product, David Drillien. “Although New Zealand’s insurance industry has been through some tough economic years, Sovereign maintains a strong financial position and continues to perform and grow exceptionally well.”

In its assessment, A.M. Best said: “The rating affirmations reflect Sovereign's supportive risk-based capitalisation, favourable operating performance and strong business profile.”

The rating, awarded late last year, is Sovereign’s fourth-consecutive annual A+ rating from A.M. Best, and reflects A.M. Best’s assessment that the company has “a superior ability to meet their ongoing insurance obligations”.

The agency said that Sovereign's capital position reflected its profitable earnings, which contributed to surplus growth over the past five financial years, and the company continued to maintain a solid risk-adjusted capitalisation to support its existing policyholder liabilities and business growth.

Reflecting on challenging New Zealand market conditions and new tax regulations, the agency noted there was potential for uncertainty in the industry, and lower profits. However, it confirmed that Sovereign’s A+ rating was considered “stable”, and it was well placed for the near future.

“Sovereign remains the market leader in the local industry, representing nearly 30 per cent of the market with respect to both in-force and new business,” said A.M. Best. “The company is expected to remain well positioned in the market through its well-established distribution platform and diversified insurance products over the near term.”

David Drillien says the rating should give continued peace of mind to Sovereign’s advisers and clients. “We are delighted at A.M. Best’s confidence that Sovereign is well-placed to deal with the market-wide challenges that lie ahead, and to lead the industry into the future.”


© Scoop Media

Business Headlines | Sci-Tech Headlines


Tiwai Point: Rio Tinto Announces Plans To Close Tiwai Point Smelter

Rio Tinto has just announced that it will wind down New Zealand Aluminium Smelters - the Tiwai Point smelter - saying the business is no longer viable. More>>


Freight: New Report On Auckland Port Relocation

The Government has released a major new report on the options for relocating the Port of Auckland’s freight operations while deferring any decision on the issue. More>>


Chartered Accountants: COVID-19 Fails To Knock Kiwi Investor Confidence, But More Disclosure Wanted

Three months of COVID-19 lockdown and investment turmoil has done little to knock confidence in New Zealand capital markets and listed companies with overall investor sentiment very similar to 2019, an investor survey held in mid June shows. However, ... More>>


Taxation: Black-Market Tobacco Sidesteps $287 Million In Excise Tax

Year-on-year increases in consumption of illicit tobacco in New Zealand have seen illegal trade swell to 11.5% of the total market. If consumed legally, illicit products would have netted the Government $287 million in excise tax during 2019. Independent ... More>>


Energy Sector: Meridian Spilled Water To Hike Electricity Prices - Authority Ruling

The Electricity Authority has found that generator Meridian Energy manipulated the power market, costing consumers about $80 million. More>>


XE Data Update: RBNZ Official Cash Rate Decision

The RBNZ will keep the Official Cash Rate (OCR) at 0.25%. T he key points in the RBNZ statement are: RBNZ keeps the OCR unchanged at 0.25% Maintain the LSAP (large scale asset purchase) at NZD$60 billion. Committee prepared to use additional monetary ... More>>


Electricity: Kiwis Ignore Promise Of Cheaper Power

Electric Kiwi and Flick Electric Co are joint winners of Canstar Blue’s award for Most Satisfied Customers | Electricity Providers From putting on an extra layer – rather than turning on a heater – to turning off lights and choosing the energy-saving ... More>>


Electricity: Transmission Pricing For A Low Carbon Future

The Electricity Authority has decided on new guidelines for transmission pricing. James Stevenson-Wallace, Chief Executive of the Electricity Authority says the new guidelines will deliver significant benefits to consumers, through lower electricity ... More>>


RNZ: Economic Activity And Business Confidence Bouncing Back

Two surveys from ANZ show business confidence and economic activity have rebounded, but uncertainty about the future remains extreme. More>>


NIWA: The Climate Record That Keeps Getting Broken

Among the multitude of New Zealand climate statistics there is one record that continues to be broken month after month. Since January 2017 there has not been one month that recorded a below average nationwide temperature, according to NIWA’s seven station ... More>>


Govt: Extended Loan Scheme Keeps Business Afloat

Small businesses are getting greater certainty about access to finance with an extension to the interest-free cashflow loan scheme to the end of the year. The Small Business Cashflow Loan Scheme has already been extended once, to 24 July. Revenue and Small ... More>>


Science: 2019 Prime Minister’s Science Prizes Announced

The 2019 Prime Minister’s Science Prizes have been announced in a digital livestream event today. The Prizes recognise the impact of science on New Zealanders’ lives, celebrate the achievements of current scientists and encourage scientists of the ... More>>


RNZ: Fuel, Alcohol Costs To Go Up From Today

The increase today in the taxes on fuel, road user charges and alcohol is being called a tone-deaf move. More>>


Stardome Observatory: Young Kiwi Astro-Photographer Shoots For The Stars

Matariki by Josh Kirkley. The stars are aligning for up-and-coming Auckland-based astro-photographer Josh Kirkley (Kāi Tahu). During lockdown, one of his images was picked up by NASA and shared on the space agency’s Instagram to its 59.2 million ... More>>

DCANZ: Time For EU To Commit To A Level Playing Field For Trade

The Dairy Companies Association of New Zealand (DCANZ) has welcomed New Zealand Trade Minister David Parker’s statement that it is unacceptable for New Zealand exporters to continue facing an ‘unlevel playing field’ in the EU. Details leaked ... More>>


New Zealand Government: Supporting Kiwi Businesses To Resolve Rent Disputes

The Government will legislate to ensure businesses that suffered as a result of the COVID-19 response will get help to resolve disputes over commercial rent issues, Justice Minister Andrew Little announced today. More>>