SINGAPORE–(BUSINESS WIRE)–AM Best has commented that the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” (Good) of Consumer Insurance Services Limited (CISL) (New Zealand) remain unchanged following the company’s decision to cancel all existing insurance policies.
CISL communicated to its insurance policyholders in recent weeks, informing them of the company’s decision to cancel all remaining card repayment insurance policies from 1 July 2022. In 2019, the company made the decision to cease issuing new insurance policies or renewing insurance policies once they expire. Since then, the number of active policies has significantly reduced and the ultimate parent, humm group limited, has determined that providing insurance is no longer part of its core business.
CISL is expected to collect its last premium payments from policyholders in May 2022. However, to support policyholders, it will continue to pay eligible claims that occur up to and including 31 December 2022. CISL’s insurance licence is expected to be cancelled in early 2023.
CISL’s rating fundamentals are currently not expected to be impacted by the aforementioned policy cancellations and the resulting accelerated run-off of its insurance operations. AM Best will continue to monitor the execution of the company’s run-off and consider any impact on the rating fundamentals going forward.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
This press release relates to Credit Ratings that have been published on AM 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 see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
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