Best Puts NZ’s Commercial Ins. Services Rating Under Review

A.M. Best Co. announced that it has placed the financial strength rating of “A-” (Excellent) of New Zealand’s Consumer Insurance Services Limited (CISL) under review with developing implications.

Best said it “remains concerned about the decline in CISL’s risk-adjusted capitalization due to the continued growth of its underwriting portfolio.” It also explained that the “rating action follows CISL’s recent announcement that it plans to increase its capital to support the continued growth of its underwriting portfolio.”

The rating agency expects to resolve the under review status in the short term.