News Column

A.M. Best Affirms Ratings of Union Medical Benefits Society Limited

June 25, 2014

HONG KONG--(BUSINESS WIRE)-- A.M. Besthas affirmed the financial strength rating of A- (Excellent) and issuer credit rating of ďa-Ē of Union Medical Benefits Society Limited(UniMed) (New Zealand). The outlook for both ratings is stable.

The ratings reflect UniMedís strong risk-adjusted capitalization, supported by its track record of profitable operating results, as well as its diversified distribution channels. The ratings also recognize the companyís balanced investment portfolio, which remains appropriate and highly liquid relative to the overall size of its liabilities.

Partially offsetting these positive rating factors are the competitive environment in the New Zealand health insurance market as well as the uncertainty UniMedís potential acquisition activities may place on prospective risk-adjusted capitalization or operating performance. The company manages this risk by ensuring any merger and acquisition decisions will be subject to its internal capital management policy, actuarial advice and due diligence.

UniMed is well placed at its current rating level. However, a material deterioration in its loss ratio or capitalization on a risk-adjusted basis could lead to negative rating actions.

The methodology used in determining these interactive ratings is Bestís Credit Rating Methodology, which provides a comprehensive explanation of A.M. Bestís rating process and contains the different rating criteria employed in the rating process. Bestís Credit Rating Methodology can be found at

Ratings are communicated to rated entities prior to publication, and unless stated otherwise, the ratings were not amended subsequent to that communication.

This rating announcement has been issued by A.M. Best Asia-Pacific Limited, which is a subsidiary of A.M. Best Company. A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit

Copyright © 2014 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.

A.M. Best

Ken Chow

Senior Financial Analyst



Moungmo Lee

General Manager



Jim Peavy

Assistant Vice President, Public Relations

+(1) 908 439 2200, ext. 5644

Source: A.M. Best Asia-Pacific Limited

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Source: Business Wire

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