A.M. Best Assigns Ratings to Quest Insurance Group Limited

A.M. Best has assigned a financial strength rating of B (Fair) and an issuer credit rating of “bb” to Quest Insurance Group Limited (Quest) (New Zealand). The outlook assigned to both ratings is stable.

Incorporated in 2004, Quest is a wholly owned subsidiary of GFNZ Group Limited (GFNZ), and a sister company to Geneva Financial Services Limited (Geneva). Geneva is a New Zealand financial company, specializing in car loans and personal loans. Quest provides loan protection and motor vehicle insurances to loan customers of Geneva.

The ratings mainly reflect Quest’s adequate risk-adjusted capitalization, low underwriting leverage and positive operating performance supported by steady investment earnings. Offsetting these positive rating factors are the company’s relatively small capital size and scale of operations, as well as limited market presence. The rating also takes into consideration that Quest is not expected to benefit in terms of financial flexibility from GFNZ.

Quest’s risk-adjusted capitalization is expected to be maintained at an adequate level, as measured by Best’s Capital Adequacy Ratio (BCAR), and supportive of the company’s growth plans. Underwriting results are projected to improve should premium volumes grow according to company’s business plan. A.M. Best expects

Quest to continue generating operating surplus underpinned by positive investment earnings from a large asset base relative to premium size.

Key factors that could lead to negative rating actions include adverse claims experience, higher than expected expenses, or investment impairments that result in a material operating loss or deterioration in Quest’s risk-adjusted capitalization. In addition, the ratings may experience downward pressure should there be a material decline in financial strength at the group level.

Ratings are communicated to rated entities prior to publication, and unless stated otherwise, the ratings were not amended subsequent to that communication.

This press release relates to rating(s) that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

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