A.M. Best Affirms Ratings of Consumer Insurance Services Limited.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of "a-" of Consumer Insurance Services Limited (CISL CISL Confédération Internationale des Syndicats Libres (French) CISL Common Intrusion Specification Language CISL Common Intelligence Services Layer CISL Confederazione Italiana dei Sindicati Lavoratori ) (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. ). The outlook for both ratings is stable. The ratings reflect CISL's favorable underwriting experience, strengthening risk-adjusted capitalization and distribution support from parent entities. CISL's risk-adjusted capitalization, as measured by 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. ), improved during the year due to a capital injection of 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. 1.5 million and good operating performance. The operating ratio improved to 56.7% in 2006 from 59.3% in 2005. A.M. Best expects CISL to continue to benefit from operational synergies in sourcing quality business through the lending activities of F&P Finance. Offsetting factors include the high dividend payout requirement and significant business concentration risk in the consumer credit insurance market. The company's dividend payout was 103.7% in 2006 and averaged 98.4% over the past five years. Ongoing capital repatriation Repatriation The process of converting a foreign currency into the currency of one's own country. Notes: If you are American, converting British Pounds back to U.S. dollars is an example of repatriation. by its parent limits CISL's growth potential. However, CISL's parent is willing to financially support its subsidiary, which partially mitigates this concern. Finally, given CISL's concentration in the consumer credit insurance market, its operating result depends on consumer spending growth in New Zealand. The sustainability of CISL's growth could be adversely affected by a downturn of lending activities in the credit market. For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. 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 www.ambest.com. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion