AM Best Comments on Credit Ratings of Partners Life Limited
On 30 September 2022, Partners Life completed the acquisition of National Australia Bank Limiteds New Zealand life insurance business, including BNZ Life.
AM Best has commented that the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Partners Life Limited (Partners Life) (New Zealand) remain unchanged following the company’s acquisition of BNZ Life Insurance Limited (BNZ Life).
On 30 September 2022, Partners Life completed the acquisition of National Australia Bank Limited’s New Zealand life insurance business, including BNZ Life. The acquisition, previously announced in December 2020, also includes the establishment of an exclusive 10-year agreement for the referral of Bank of New Zealand customers with life insurance needs to Partners Life.
Following the acquisition, all insurance assets and liabilities of BNZ Life have been transferred to Partners Life. Subsequently, BNZ Life has ceased to operate as an insurance company and relinquished its insurance license.
Partners Life’s pro-forma consolidated risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), is expected to remain at the strongest level post acquisition of BNZ Life. The acquisition was funded by a combination of equity and reinsurance financing. AM Best also expects the transaction to give rise to an increase in intangible assets.
The under review with positive implications status currently applied to Partners Life’s Credit Ratings (ratings) also remains unchanged, reflecting a separate pending transaction that is expected to result in Dai-ichi Life Holdings, Inc. (Dai-ichi Group) acquiring Partners Group Holdings Limited, including Partners Life. AM Best will continue to monitor closely the progress of this pending transaction and evaluate any impact on Partners Life’s rating fundamentals. A resolution of the under review status is expected following the conclusion of the transaction.
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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