Best’s News & Research Service - March 10, 2022 09:15 AM (EST)
AM Best Comments on Credit Ratings of Consumer Insurance Services Limited
- March 10, 2022 09:15 AM (EST)
Singapore //BestWire// - AM Best has commented that the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” (Good) of Consumer Insurance Services Limited (CISL) (New Zealand) remain unchanged following the recent announcement that humm group limited (Humm group), the ultimate parent of CISL, has entered into a binding agreement to sell its consumer finance business to Latitude Group Holdings Limited. The transaction remains subject to shareholder and regulatory approvals.
Humm group’s consumer finance business comprises its “buy now pay later”, installment and credit card operations in Australia and New Zealand. CISL provides credit card repayment protection insurance for Humm group’s New Zealand cardholder customers.
CISL’s rating fundamentals are currently not expected to be impacted by the transaction. CISL’s insurance operations are presently in run-off. The company’s prior decision to cancel all existing card repayment insurance policies from 1 July 2022, and its target to relinquish its insurance licence in early 2023, are expected to remain unchanged. However, AM Best will continue to monitor the progress of the transaction and consider any impact on CISL’s rating fundamentals going forward.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
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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.