|[December 21, 2012]
A.M. Best Withdraws Ratings of Southern Response Earthquake Service Limited
HONG KONG --(Business Wire)--
A.M. Best Co. has affirmed the financial strength rating of A-
(Excellent) and issuer credit rating of "a-" of Southern Response
Earthquake Services Limited (SRESL) (New Zealand). The outlook for
both ratings is stable. Concurrently, A.M. Best has withdrawn the
ratings as the company has requested to no longer participate in A.M.
Best's interactive rating process.
The rating affirmations reflect SRESL's Crown Entity status and the
ongoing financial support of the New Zealand government. Effective from
April 5, 2012, SRESL became a government-owned company, with the purpose
of managing and settling its predecessor's (the former AMI Insurance
Limited) claims related to the 2010 /2011 Chrstchurch earthquakes.
SRESL's claims paying ability continues to benefit materially from
ongoing government support, which is expected to be further strengthened
by late December 2012.
The methodology used in determining these ratings is Best's Credit
Rating Methodology, which provides a
comprehensive explanation of A.M. Best's rating process and contains the
different rating criteria employed in the rating process. Key criteria
utilized include "Understanding Universal BCAR." Best's Credit Rating
Methodology can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the world's oldest and most
authoritative insurance rating and information source. For more
information, visit www.ambest.com.
Copyright © 2012 by A.M. Best Company, Inc. ALL RIGHTS
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