Hollard Australia’s capital remains solid until 2026

It will also benefit from its acquisition of Commonwealth Insurance.

Australia-based Hollard Holdings Australia is seen to sustain its strong business and financial positions in the coming years, supported by increased market share and improved performance, S&P Global Ratings said.

Under updated criteria, Hollard Australia's capital adequacy remains robust at the 99.8% confidence level through 2026. 

The improved adequacy is attributed to the removal of previous liability adjustment haircuts and no deductions for non-life deferred acquisition costs, alongside better risk diversification benefits. 

However, recalibrated capital charges and scaled catastrophe risk charges at higher confidence levels partially offset these gains.

Hollard Australia, now the fifth largest property and casualty (P&C) insurer in Australia with a market share of approximately 4.4%, is expected to benefit from the integration of its 2022 Commonwealth Insurance acquisition, potentially enhancing scale and efficiency.

The subgroup is projected to maintain strong capital adequacy, with capital positioned at the upper end of the 99.8% confidence level. 

Despite supportive capital assessment factors, higher confidence levels and natural catastrophe charges have moderated improvements.

HIC remains a core part of Hollard Australia’s operations and a major contributor to its capital and earnings.