AM Best Confirms Accuro Health Insurance Society Limited Credit Ratings


SINGAPORE, July 14, 2022–(BUSINESS WIRE)–AM Best affirmed the financial strength rating of B+ (good) and the issuer’s long-term credit rating of “bbb-” (good) of Accuro Health Insurance Society Limited (Accuro) (New Zealand). The outlook for these credit ratings (ratings) is negative.

The ratings reflect Accuro’s balance sheet strength, which AM Best assesses as adequate, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

Accuro’s balance sheet strength assessment is supported by its risk-adjusted capitalization, which is expected to remain at least at the adequate level over the medium term, as measured by Best’s capital adequacy ratio (BCAR). Accuro is undertaking a substantial investment to upgrade its policy administration system, with development and implementation costs expected to result in increased intangible assets in the near term. The negative outlook reflects continued uncertainty and potential pressure on Accuro’s risk-adjusted capitalization in the short to medium term, which remains sensitive to changes in intangibles and fluctuations in earnings.

AM Best expects Accuro’s regulatory solvency position to remain appropriate, although the buffer above the regulatory minimum is expected to decline in the near term. In addition, the company has a small absolute capital base of NZD 10.1 million, at the end of the fiscal year on August 31, 2021, which increases the sensitivity of its capital adequacy to stressed scenarios. AM Best considers Accuro’s financial flexibility to be limited given its status as a member-owned organization. However, the company has the ability to make price adjustments at relatively short notice to support profitability.

AM Best considers Accuro’s operating performance to be adequate with a five-year average return on equity ratio of 4.6% (fiscal years 2017-2021). The company’s combined ratio generally tracked the break-even point, reflecting Accuro’s status as a not-for-profit organization that provides health insurance in New Zealand. Investment income remains a key driver of Accuro’s operating performance, with a five-year average net return (including gains/losses) of 3.1% (fiscal years 2017-2021).

The assessment of the Company’s business profile, which is limited, reflects its relatively small-scale operations and its limited geographic and product diversification. Accuro had less than 3% market share in the New Zealand health insurance industry based on gross written premiums in 2021. The company has seen modest premium growth over the past five years, supported by competitive advantages derived from innovative product offerings and a high quality customer base. service.

Ratings are communicated to rated entities before publication. Unless otherwise indicated, the ratings have not been changed as a result of this communication.

This press release relates to credit ratings that have been published on AM Best’s website. For all rating information relating to the release and relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Assessment Activity Web page. For more information on the use and limitations of credit rating opinions, please see Best Credit Score Guide. For more information on the proper use of Best’s Credit Ratings, Best’s Performance Ratings, Best’s Preliminary Credit Ratings, and AM Best’s press releases, please see Guide to Proper Use of Best’s Ratings and Reviews.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

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Yi Ding
Senior Financial Analyst
+65 6303 5021
[email protected]

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200 ext. 5159
[email protected]

Michael Dunckley, CFA
Director, Analytics
+65 6303 5020
[email protected]

Jeff Mango
General director,
Strategy & Communication
+1 908 439 2200 ext. 5204
[email protected]


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