SINGAPORE–(BUSINESS WIRE)–AM the best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb” (Good) of DPL Insurance Limited (DPL) (New Zealand). The outlook for these Credit Ratings (ratings) is stable.

The ratings reflect the strength of DPL’s balance sheet, which AM Best rates as strong, as well as its adequate operating performance, limited business profile and appropriate management of enterprise risk. The valuations also factor in a neutral impact from the company’s ultimate ownership by Turners Automotive Group Limited (Turners), a New Zealand motor vehicle retailer and financial services group.

DPL’s balance sheet strength rating is supported by its risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), which was at its strongest since the end of fiscal 2022. In addition to therefore, AM Best expects the company to adjust to risk Capitalization remains at its strongest level in the outlook, supported by controlled underwriting growth and adequate earnings retention. AM Best sees DPL’s investment strategy as balanced, with the majority of investment assets held in term deposits, albeit with significant exposure to illiquid assets, including investment properties. A partially offsetting balance sheet factor remains the significant volume of intangible assets arising from the company’s acquisition of the Autosure insurance business in 2017, including goodwill items related to the brand name and acquired agency relationships.

AM Best sees DPL’s operating performance as adequate. The company reported a five-year average return on equity of 12.6% (fiscal years 2018-2022), supported by a combination of stable underwriting profits and strong investment returns. Technical performance has shown an improving trend over the past five years, driven primarily by DPL’s initiatives to increase pricing and risk selection for its core insurance products, and the positive impact of the COVID-19 pandemic on the frequency of line claims related to engines. business in recent periods. In addition, investments in technology and information systems have contributed to improving operational efficiency and reducing management expenses over the past years. DPL reported an average net investment return (excluding gains and losses) of 3.1% over the past five years (fiscal years 2018-2022).

AM Best sees the company’s business profile as limited given its location and relatively modest scale of operations. DPL’s ownership and relationship with its parent, Turners, which is New Zealand’s largest used vehicle retailer, provides good access to the business and creates a valuable distribution network. In recent years, the company’s premium growth has been affected by fluctuations in used car sales due to the COVID-19 pandemic. However, potential premium growth is expected to increase as a result of market recovery and the company’s sales initiatives.

Ratings are communicated to rated entities prior to publication. Unless otherwise stated, ratings were not changed following that communication.

This press release relates to the Credit Ratings that are published on AM Best’s website. For all rating information relating to the release and related disclosures, including details of the office responsible for issuing each of the individual ratings referred to in this release, please see AM Best’s latest Rating Activity webpage. For additional information about the use and limitations of Credit Score opinions, please see Best’s Guide to Credit Scores. For information on the proper use of Best Credit Ratings, Best Performance Ratings, Best Preliminary Credit Ratings and AM Best Press publications, please see Best’s Guide to the Appropriate Use of Ratings and Reviews.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

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