KUALA LUMPUR, Sept 19 (Bernama) — Global credit rating agency, AM Best has withdrawn the financial strength rating of A- (Excellent) and the long-term issuer credit rating of “a-” (Excellent) of Foundation Life (NZ) Limited (FLNZ) as the company no longer holds insurance policy liabilities.
While FLNZ remains a licensed insurer, the Reserve Bank of New Zealand has granted the company an exemption under section 60 (2A) of the Insurance (Prudential Supervision) Act 2010 from having to hold a current financial strength rating.
According to the global credit rating agency in a statement, at the time of the withdrawal, both ratings carried a stable outlook.
As part of its winding-down process, FLNZ cancelled all participating insurance policies with effect from Sept 1. Policyholders were offered options including a cash payout, a replacement life insurance policy with Chubb Life Insurance New Zealand Ltd (Chubb Life NZ), or a combination of both.
The company also transferred all unsettled claims and policies to Chubb Life NZ. Cash payments to policyholders are expected to begin in early October 2025.
AM Best noted that its procedure normally includes a final rating opinion upon withdrawal. However, as FLNZ no longer carries insurance assets or liabilities, a final opinion could not be issued.
FLNZ’s withdrawal marks the latest step in the company’s ongoing exit from the insurance market.
— BERNAMA
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