Fidelity Life has once again received an A- (Excellent) financial strength rating from AM Best, maintaining the designation for the 29th consecutive year.
The rating, first awarded in 1996, reflects the insurer’s ability to meet financial commitments, with AM Best citing a “very strong” balance sheet. The rating outlook remains stable.
Simon Pennington (pictured), chief financial officer at Fidelity Life, said the independent assessment reinforces confidence among customers and advisers.
“This A- rating from AM Best is a reassuring endorsement of our business’s financial health and stability. As a life insurer, this independent assessment gives advisers confidence in partnering with us, and for customers, it ensures peace of mind in our ability to pay claims,” he said. “It’s a strong foundation for us to keep growing for the good of New Zealand and supporting New Zealanders when they need us most.”
The rating comes as New Zealand’s life insurance market is set for significant expansion, driven by demographic shifts, economic factors, and increasing demand for financial security.
According to research from GlobalData, New Zealand’s life insurance sector is expected to grow from $5.9 billion in gross written premiums (GWP) in 2024 to $8.3 billion by 2029.
The projected compound annual growth rate (CAGR) is 7%, supported by rising demand for personal accident and health (PA&H) insurance, whole life policies, and increased consumer awareness of financial planning.
GlobalData forecasts that GWP will increase to $6.4 billion in 2025, reflecting annual growth of 8.2%. Several factors are expected to contribute to this trend, including:
Despite projected market growth, New Zealand’s life insurance penetration rate stood at 1.3% in 2023, significantly lower than other Asia-Pacific markets such as South Korea (7.4%), Hong Kong SAR (15.9%), Japan (6.3%), and Singapore (7.5%).
Affordability concerns may continue to limit policy uptake, particularly as households manage cost-of-living pressures.
