HONG KONG--(BUSINESS WIRE)--A.M. Best Co. has placed under review with negative implications the financial strength rating of A (Excellent) and issuer credit rating of “a” of New Zealand Local Government Insurance Corporation Limited (Civic Assurance) (New Zealand).
The rating actions reflect A.M. Best’s concerns over the downgrading of one of Civic Assurance’s reinsurers and the resultant impact on Civic Assurance’s capitalization. The company’s ratings are expected to remain under review while A.M. Best’s discussions continue with management regarding further reinsurance arrangements, loss development and capital management.
The principal methodology used in determining these ratings is Best’s Credit Rating Methodology - Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilized include “Natural Catastrophe Stress Test Methodology.” Methodologies can be found at www.ambest.com/ratings/methodology.
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