A.M. Best Affirms Ratings of Police Health Plan Limited

SINGAPORE--(BUSINESS WIRE)-- A.M. Best has affirmed the financial strength rating of B++ (Good) and the issuer credit rating of “bbb+” of Police Health Plan Limited (PHP) (New Zealand). The outlook for both ratings is stable. PHP is a member-owned company providing health cover to current and former members of the New Zealand police.

The ratings reflect PHP’s business profile, operating performance and favourable balance sheet strength. PHP’s close integration with the Police Association has helped PHP to sustain a low expense ratio and target a high claims ratio to the benefit of PHP’s members, while still generating surplus to strengthen its capital position.

Offsetting rating factors include a gradual reduction in earnings buffer as PHP aims to manage its overall financial performance to a breakeven level by increasing benefit limits available to its members. This will raise the importance of PHP’s ability to closely monitor and promptly adjust premiums rates if needed, which PHP has proven in the past.

PHP’s ratings are well-placed at their current levels.

Negative rating pressure could occur from adverse volatility in PHP’s risk-adjusted capitalization due to negative operating results.

The methodology used in determining these interactive ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

Key insurance criteria reports utilized:

• Risk Management and the Rating Process for Insurance Companies.
• Understanding Universal BCAR

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.

A.M. Best
Chi Yeung Lok, +65-6589-8400 x 211
Senior Financial Analyst
[email protected]
or
Moungmo Lee, +65-6589-8400 x210
General Manager
[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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