A.M. Best Affirms Ratings of Co-operative Life Limited

SINGAPORE--(BUSINESS WIRE)-- A.M. Best has affirmed the financial strength rating of B++ (Good) and the issuer credit rating of “bbb+” of Co-operative Life Limited (Co-op Life) (New Zealand). The outlook for both ratings is stable.

The rating affirmations reflect Co-op Life’s favorable risk-adjusted capitalization, low product risk profile and continued profitability. As a wholly owned subsidiary of The Co-operative Bank Limited (Co-op Bank), Co-op Life also benefits from Co-op Bank’s network of more than 30 branches throughout New Zealand, as well as a captive stream of business referrals from Co-op Bank.

Offsetting rating factors include the relatively small scale of Co-op Life’s in-force portfolio, as well as continued contingent commitment to support certain debt holders of Co-op Bank.

As an insurance subsidiary of a banking group, Co-op Life’s total assets are regulated to not be greater than 1% of the bank’s total consolidated assets. This effectively implies a growth constraint on this insurance business as well.

Although the continued contingent commitment to support certain debt holders of Co-op Bank has diminished significantly over the past two years, the remaining contingent commitment remains sizeable relative to Co-op Life’s capital position.

Co-op Life is well-positioned at its current rating level. Factors that could lead to negative rating actions include material deterioration of actual solvency capital as a result of operating losses or deterioration in Co-op Bank’s financial strength.

Ratings are communicated to rated entities prior to publication, and unless stated otherwise, the ratings were not amended subsequent to that communication.

This press release relates to rating(s) that have been published on A.M. 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 visit A.M. Best’s Ratings & Criteria Center.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2015 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

View source version on businesswire.com: http://www.businesswire.com/news/home/20151020006479/en/

A.M. Best Company, Inc.
Larina Huang, +65-6589-8400, ext. 218
Associate Financial Analyst
[email protected]
or
Jason Shum, +65-6589-8400, ext. 217
Financial Analyst
[email protected]
or
Christopher Sharkey, +(1) 908 439 2200, ext. 5159
Manager, Public Relations
[email protected]
or
Jim Peavy, +(1) 908 439 2200, ext. 5644
Assistant Vice President, Public Relations
[email protected]

Source: A.M. Best Company, Inc.

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