Best’s News & Research Service - November 10, 2021 10:48 AM (EST)
AM Best Places Credit Ratings of Kiwi Insurance Limited Under Review With Developing Implications
- November 10, 2021 10:48 AM (EST)
Singapore //BestWire// - AM Best has placed under review with developing implications the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Kiwi Insurance Limited (Kiwi Insurance) (New Zealand).
These Credit Rating (rating) actions follow the announcement on 8 November 2021, that Kiwi Group Holdings Limited, the immediate parent company of Kiwi Insurance, has entered into an agreement to sell 100% of its shares in Kiwi Insurance to nib nz holdings limited (nib NZ) for NZD 45 million (USD 32 million). The transaction also includes the establishment of an exclusive relationship with Kiwibank Limited, which will see the bank refer its retail customers to nib NZ for their life insurance needs. The transaction, which is subject to customary closing conditions, including regulatory and other approvals, is expected to be completed in early 2022.
The ratings have been placed under review with developing implications, as AM Best needs to assess the impact of the planned acquisition on Kiwi Insurance’s credit fundamentals. AM Best will need to consider the planned integration of Kiwi Insurance within the nib NZ group, any expected changes in strategy and any implicit or explicit support to be provided by the new parent company.
The ratings will remain under review pending completion of the transaction, and until AM Best can fully assess the post-acquisition credit rating fundamentals of Kiwi Insurance.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.