SINGAPORE--(BUSINESS WIRE)--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.
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