SINGAPORE, March 23 (Bernama-BUSINESS WIRE) — AM Best has removed from under review with negative implications and downgraded the Long-Term Issuer Credit Rating to “bb” (Fair) from “bb+” (Fair) and affirmed the Financial Strength Rating (FSR) of B (Fair) of Brightsideco Insurance Limited (Brightsideco) (New Zealand). The outlook assigned to these Credit Ratings (ratings) is stable. Concurrently, AM Best has withdrawn these ratings as the company has requested to no longer participate in AM Best’s interactive rating process following exemption by the Reserve Bank of New Zealand from the requirement to have an FSR.
These rating actions are the result of Brightsideco being placed into run-off following the cancellation of its arrangement with the New Zealand operations of Harvey Norman Holdings Limited, a large electrical goods retailer based in Australia, to distribute extended warranty insurance products. As a result, Brightsideco lacks a competitive position or the ability to alter or re-price its book of business, and, in AM Best’s view, has a weaker business profile.