New Zealand-based Beneficial Insurance Limited has achieved a remarkable return on equity of 36.1% for the fiscal year 2024, reflecting robust performance in its core pet insurance segment. According to AM Best, the company demonstrates adequate balance sheet strength, strong operating performance, and effective enterprise risk management.
As of March 31, Beneficial Insurance’s risk-adjusted capitalization reached its strongest level, as indicated by Best’s Capital Adequacy Ratio (BCAR). This achievement is attributed to moderate underwriting leverage coupled with a conservative investment strategy. While the company’s capital base is relatively small, it is bolstered by retained earnings, although it remains susceptible to fluctuations during times of stress.
AM Best noted the neutral impact of Beneficial Holdings Limited, the parent company, on its assessment of the insurance subsidiary. The company is expected to sustain solid profitability through low loss ratios and favorable investment returns.
Despite its strong financial metrics, Beneficial Insurance’s business profile is limited, primarily due to its small scale and focus on pet insurance within New Zealand. The firm occupies a niche yet modest share of the general insurance market. AM Best characterized the product risk associated with pet insurance as low, given its reduced exposure to significant losses and catastrophic events.
