---

Partners Life pleased to announce secure financial strength rating

Partners Life has received a “Secure” B++ rating from A.M. Best, an RBNZ approved rating agency.

This means that in A.M. Best’s opinion the Company has a good ability to meet its on-going insurance obligations.

A.M. Best evaluate balance sheet strength based on BCAR (Best’s Capital Adequacy Ratio) and review operating performance and business profile as leading indicators to the Company’s ability to preserve or generate new capital over time and therefore to future balance sheet strength.

BCAR measures adjusted surplus relative to the required capital necessary to support a company’s operating and investment risks. The Life/Health BCAR guidelines on the A.M.
Best website indicate a BCAR of 120% for B++ rating compared to 130% for A- and 145% for A.

As Partners Life is a new company, A.M. Best requires additional rigor in certain areas of the rating process and applies more stringent quantitative and qualitative metrics. In particular, risk adjusted capital levels need to be well above the levels expected of a comparable existing company. This means that for a given capital level an early stage company such as Partners Life will have a lower rating than a more established company.

Having raised equity of over $23m, Partners Group is currently capitalised at a market value of $78m and has a wide shareholder base, which includes a number of institutions and the majority of its management and staff.

Partners Life’s solvency capital at 31 March 2012 was around $14m, more than double the amount required for the company under the RBNZ solvency standards.

Partners Life has a quota share treaty with SCOR Global SE, the world’s fifth largest
reassurer. Under this treaty the majority of Partners Life’s claims risks (excluding medical) are reassured and the Company receives reassurance commissions that offset its expenses, thus allowing it to grow without creating undue funding strain.

Although it did not need to gain a financial rating until September 2012, Partners Life believe in transparency and doing the right thing by arming customers with the knowledge they need to make informed decisions.

“We are very pleased with the results of A.M. Best’s evaluation. It’s a reflection of the outstanding work that the team has done so far in building a foundation to ensure that Partners Life will be a great success story.” Naomi Ballantyne, Managing Director.

 

For further information, please contact:
Sally Cousins
Marketing Manager
Partners Life
Email: sallycousins@partnerslife.co.nz
DDI: 09 951 5029

---

---

---

Privacy Policy Adviser Login