24 Jan 2014

Credit agency assigns low risk to NZ life insurance sector

7:31 am on 24 January 2014

Standard & Poor's Ratings has assigned a low risk insurance industry and country risk assessment to New Zealand's life insurance sector.

It says the score reflects its view of New Zealand's low country risk as a relatively high-income economy with a stable policy environment.

Standard & Poor's says the low industry risk reflects the strong returns and relatively less exposure to interest rate and longevity risks than other insurance markets.

The low risk score for the New Zealand life sector is the second-strongest on a scale of six and is comparable to a number of other life markets, such as those in France, Hong Kong, the United Kingdom, and the United States.