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.
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