Thursday 24th March 2011 |
Text too small? |
AM Best Co has downgraded the rating of New Zealand fire and general insurer AMI Insurance Ltd due to losses from the Canterbury earthquake.
The financial strength rating has moved to A minus from A plus and the issuer credit rating to A minus from AA minus. Both ratings have been placed under review with negative implications. The A minus financial strength rating is called excellent, while the A plus rating is superior.
AM Best said it understood that capital raising initiatives were being pursued by AMI's management and it had the ratings under review with negative implications while discussions continued with management regarding back-up capital plans.
The downgrades reflected AM Best's view of the negative impact on AMI's capitalisation, due to the latest loss development from the Canterbury earthquake in February 2011.
AM Best was concerned with AMI's risk management in relation to its aggregate catastrophe exposures.
AMI is the largest wholly New Zealand-owned fire and general insurance company. It is a mutual, meaning it is owned by its customers.
NZPA
No comments yet
Fonterra appoints permanent COO
Manawa Energy FY24 Annual Results & Webcast Details
Seeka Provides the Results of Meeting - ASM
April 19th Morning Report
PGW Guidance Update
CNU - Commerce Commission releases draft expenditure decision
Spark announces departure of Product Director
TGG - T&G appoints new Director
April 18th Morning Report
SKC - APPOINTMENT OF CHIEF EXECUTIVE OFFICER