AM Best has reaffirmed the financial strength rating of A (Excellent) and the long-term issuer credit rating of “a” (Excellent) for Partners Life Limited. The outlook for both ratings remains stable.
The ratings reflect the insurer’s balance sheet position, which AM Best categorised as very strong, alongside an adequate level of operating performance, a neutral business profile, and an appropriate risk management framework.
The assessment also considered the financial support of Partners Life’s parent company, Dai-Ichi Life Holdings Inc.
Partners Life’s balance sheet strength is supported by its risk-adjusted capitalisation, which AM Best expects to remain at the highest level in the medium term, based on the Best’s Capital Adequacy Ratio (BCAR) measure.
The company is also noted for its financial flexibility and a conservative investment approach. However, AM Best identified reliance on third-party reinsurance for risk transfer and commission financing as factors that offset some of these strengths.
AM Best classified Partners Life’s operating performance as adequate, citing its track record of positive earnings largely driven by its in-force portfolio.
Additionally, the company has achieved stable investment returns over the past five years. However, in its 2024 financial results, the company reported an operating loss, reflected in a return-on-equity (ROE) ratio of -2.0%, which AM Best attributed to a lower insurance service result.
Despite some volatility in earnings, the rating agency expects the insurer’s performance metrics to stabilise over time.
Partners Life is one of New Zealand’s leading life insurers, distributing its policies mainly through independent financial advisers. It also benefits from an exclusive 10-year distribution arrangement with Bank of New Zealand (BNZ), following its acquisition of BNZ Life Insurance Limited in 2022.
The company’s ratings also incorporate the benefits of ownership by Dai-Ichi Life Holdings, one of Japan’s largest life insurance groups. While Partners Life represents a relatively small portion of Dai-Ichi’s overall business, it is considered strategically important due to its role in expanding the group’s footprint in New Zealand. AM Best expects that Dai-Ichi would provide capital support if necessary.
In addition to the ratings announcement, Partners Life has made several leadership appointments aimed at strengthening its management team.
Mark Schollum has been named the company’s next chief financial officer, with his tenure beginning in March 2025.
Schollum has more than 20 years of experience in financial leadership, including previous CFO roles at Cigna and Chubb Life. His expertise spans financial operations, mergers and acquisitions, and strategic business growth. He is a Chartered Accountant and holds a bachelor of commerce with honours from the University of Otago.
The company also appointed Mary-Jane (MJ) Daly to its board of directors, effective Dec. 2, 2024. Daly, who has held governance positions with AIG Insurance New Zealand and Fonterra Shareholders’ Fund, will take over as board chair on Feb. 1, succeeding Jim Minto, who is stepping down after eight years in the role.
