AM Best Maintains Under Review With Developing Implications Status for Credit Ratings of Partners Life Limited

SINGAPORE–(BUSINESS WIRE)–#insurance—AM Best has maintained the under review with developing implications status for the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of �a-” (Excellent) of Partners Life Limited (Partners Life) (New Zealand).

These Credit Ratings (ratings) were placed under review with developing implications on 18 December 2020, following the announcement that Partners Life had entered into an agreement with National Australia Bank Limited to acquire its New Zealand life insurance business, including BNZ Life Insurance Limited. The transaction also includes the establishment of an exclusive 10-year agreement for the referral of Bank of New Zealand customers with life insurance needs to Partners Life. The total transaction consideration is NZD 290 million (USD 208 million).

The ratings have been maintained under review with developing implications, as the transaction, which is subject to customary closing conditions, including regulatory and other approvals, is now expected to be completed by the end of March 2022.

The under review with developing implications status reflects the need for AM Best to assess fully the financial and operational impacts of the acquisition and the funding structure on Partners Life’s rating fundamentals, including on its balance sheet strength and business profile.

The ratings will remain under review pending completion of the transaction and until AM Best can complete its assessment of Partners Life’s post-acquisition credit rating fundamentals.

Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that 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 pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media – Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

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

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Contacts

Sin Yee Chuah
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sinyee.chuah@ambest.com

Christopher Sharkey
Manager, Public Relations
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Alex Rafferty, ACA
Associate Director, Analytics
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Jim Peavy
Director, Communications
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james.peavy@ambest.com