Standard & Poor’s has affirmed its double-‘A’-plus insurer financial strength and counterparty credit ratings on Australian general insurer NRMA Insurance Ltd. (NRMA) and its New Zealand subsidiary, NRMA Insurance NZ Ltd. (formerly State Insurance Ltd.).
“The affirmation follows the announcement of a share buyback of up to A$350 million [$188.5 million] of Insurance Australia Group Ltd.’s (IAG) capital base, along with the proposed issuance of up to A$350 million in reset preference shares,” S&P’s bulletin stated.
“The ratings on NRMA continue to reflect the company’s excellent business position, with clear market leadership in general insurance in Australia, as well as the associated benefits of economies of scale and expense advantage, strong capital position, and soundly and conservatively based claims reserves,” stated Gavin Gunning, a director of S&P’s Financial Services Ratings.
S&P indicated, however that its outlook on NRMA continued to be negative, noting that , “the company’s operating performance, while having recently improved, historically has not been supportive of the rating, and will continue to be an influencing rating factor,” and a “potential for further deterioration in capitalization in the medium term.”|”sp, affirms, ‘aa+’, ratings, on, australia’s, nrma
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