AM Best Comments on Credit Ratings of The Hollard Insurance Company Pty Ltd
- S&P 500 hits 2023 closing high as Powell strengthens peak rate bets
- Santa will continue to deliver - Stock Trader's Almanac
- 5 Tesla analysts weigh in as Tesla stock lags after Cybertruck updates
- Shares climb, dollar falls with Fed comments inspiring dovish bets
- Ulta Beauty lifts guidance after Q3 results beat estimates
SINGAPORE--(BUSINESS WIRE)-- AM Best has commented that the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of The Hollard Insurance Company Pty Ltd (HIC) (Australia) remain unchanged following its intermediate parent, Hollard Holdings Australia Pty Ltd (HHA), having acquired Commonwealth Insurance Limited (CIL). The outlook of these Credit Ratings (ratings) is stable.
On 30 September 2022, HHA completed the acquisition of CIL, subsequently renamed to Hollard Insurance Partners Limited (HIP) from Commonwealth Bank Ltd (CBA). The acquisition, previously announced in June 2021, also includes an exclusive 15-year strategic alliance between CBA and HHA to distribute home and motor products to CBA’s customers.
Following the recent transaction, HHA has become the intermediate non-operating holding company of HIC and HIP, and consolidates the risk-bearing operations of both entities. HIC’s rating fundamentals continue to incorporate a neutral holding company impact from HHA. Pro-forma consolidated risk-adjusted capitalisation at HHA, as measured by Best’s Capital Adequacy Ratio (BCAR), is expected to decline following the acquisition of HIP, as a result of growth in combined underwriting risks and due to an increase in intangible assets. However, over the medium term, AM Best expects HHA’s risk-adjusted capitalisation to be managed to at least a very strong level. Existing and future debt obligations at intermediate and ultimate holding company levels also are not expected to lead to any undue pressure for capital extraction or dividends from HIC, HIP or HHA.
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 Performance Assessments, 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. For more information, visit www.ambest.com.
Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
Senior Financial Analyst
+65 6303 5021
Manager, Public Relations
+1 908 439 2200, ext. 5159
Associate Director, Analytics
+852 2827 3424
+1 908 439 2200, ext. 5098
Source: AM Best
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Sharjah Celebrates the UAE’s 52nd Union Day
- Exhibition World Bahrain Secures "World’s Leading New Exhibition and Convention Centre 2023" Award at World Travel Awards 2023
- EcoBalance, KazBeef, and rTek Launch Climate Smart Beef Pilot Program at COP28
Create E-mail Alert Related CategoriesBusiness Wire, Press Releases
Related EntitiesAM Best Company, Dividend, Definitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!