nib NZ maintains solid underwriting earnings

Its capital adequacy remains sturdy.

New Zealand core operations of nib is forecasted to produce a sound underwriting earnings and keep its financial strength in the course of two years, S&P Global Ratings said.

Capital adequacy remains excellent, supporting the current rating, though moderated by the relatively small size of the New Zealand operations. 

A higher capital buffer and forecasts of increased capital and earnings retention have strengthened the subgroup's financial risk profile to very strong, up from strong.

The stand-alone creditworthiness is retained at 'a-', with a lower anchor selection due to the modest scale and reliance on health insurance.

The stable outlook reflects the expectation that nib's New Zealand operations will remain core to the group and maintain solid operating performance and financial strength over the next two years.

The rating could be lowered if the nib group credit profile weakens or if there is a reduced expectation of extraordinary support. Conversely, an upgrade could occur if the nib group credit profile improves through increased operational diversity and a stronger competitive position.