Standard & Poor’s has assigned its ‘A-‘ insurer financial strength rating on New Zealand-based AA Insurance Ltd. (AAIL). The rating reflects the company’s core status in the Royal & Sun Alliance Insurance (New Zealand) Ltd. group and demonstrated strong links and highly integrated operations with its parent company. The outlook on AAIL is developing.
AAIL’s stand-alone strength reflects its good market position and brand, along with the strength of its 68 percent ownership by RSAINZ and 32 percent ownership by New Zealand Automobile Association (NZAA; not rated).
Offsetting these strengths are the historically poor, but improving, earnings performance of its predecessor AA-GIO Insurance Ltd. (BBB+/Stable/–), and a strong competitive environment in the New Zealand general insurance market.
“We expect that AAIL’s stand-alone business profile will be strengthened, as the company becomes a consistently profitable and growing business while leveraging off the benefits provided by both its owners, RSAINZ and NZAA,” Peter Sikora, director, Financial Services Ratings, commented. “Standard & Poor’s does not expect any dilution in RSAINZ’s majority shareholding, despite some uncertainty in the outcome of the upcoming Royal & Sun Alliance Australasia group’s initial public offer.”
Was this article valuable?
Here are more articles you may enjoy.
Electric Bills in Coal Country West Virginia Now Top Mortgage Payments 
State Farm Paid a ‘Hail’ of a Lot of Claims in 2025 
Chubb Q1 Net Income Increases 74% on Fewer Catastrophe Losses 
Hedge Fund Money Is Reshaping a 180-Year-Old Insurance Model 
