A.M. Best Affirms Rating of China Insurance -New Zealand- Company Limited.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of B+ (Very Good) of China Insurance (New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. ) Company Limited (CINZ CINZ Conventions & Incentives New Zealand ). The outlook is stable. The rating reflects the company's moderate capitalization, high liquidity and marginally improved operating performance. A.M. Best expects the recent technology system upgrade will continue to support the company's operation by improving its underwriting efficiency. The net underwriting result of CINZ has improved to NZD NZD In currencies, this is the abbreviation for the New Zealand Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 0.18 million (USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 0.12 million) in fiscal year 2003 from NZD 0.09 million (USD 0.06 million) in fiscal year 2002. This is supported by its stable loss ratio over last 4 years. The Best's Capital Adequacy Ratio Capital adequacy ratio (CAR), also called Capital to Risk (Weighted) Assets Ratio (CRAR)[], is a ratio of a bank's capital to its risk. National regulators track a bank's CAR to ensure that it can absorb a reasonable amount of loss. (BCAR BCAR Brunswick County Association of Realtors BCAR British Civil Airworthiness Requirements BCAR Bullitt County Animal Rescue (Shepherdsville, KY) BCAR Business Case Analysis Report BCAR Beaver Creek Array BCAR Buffalo Civic Auto Ramps, Inc. ), which measures capitalization on a risk- adjusted basis, indicates that the company is moderately capitalized. CINZ's capital and surplus has increased to NZD 3.6 million (USD 2.3 million) in fiscal year 2003 from NZD 1.3 million (USD 0.8 million) in fiscal year 2002. This is mainly supported by the capital injection of NZD 2 million (USD 1.3 million) from its ultimate parent, China Insurance (Holdings) Company Limited. CINZ's net premium leverage ratio has improved to 1.76 times in fiscal year 2003 from 3.53 times in fiscal year 2002. These positive factors are partially offset by CINZ's ongoing volatility in its operating performance, its relative weak capital position and the strong market competition in New Zealand. Given the company's market size and its capitalization level, the scope for business growth is limited. The market competition in New Zealand's general insurance industry remains very intense, which would further exert pressure on its overall operating performance and profitability level. A.M. Best remains cautious about the company's ability to sustain its business growth with a secure level of capitalization. Strict adherence to this benchmark is critical to the rating's future stability. For current Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , independent data and analysis on more than 3,000 individual property/casualty companies, groups and industry composites, please visit http://www.ambest.com/pc. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at http://www.ambest.com. |
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