Fitch Ratings has confirmed that First Insurance Limited (FIL), a New Zealand-based insurer, will maintain its financial stability despite plans to transfer its insurance portfolio to other insurers.
FIL, which operates under the umbrella of First Credit Union (FCU), is set to transfer its portfolio to Provident Insurance Corporation Limited and Pinnacle Life Limited by the end of March 2025. FCU has already initiated discussions with the Reserve Bank of New Zealand, the country’s insurance regulator, regarding the transfer.
Once the transfer is completed, FCU intends to request the cancellation of FIL’s insurance licence. The insurer has assured that no changes will be made to FIL’s capital structure until the licence is formally cancelled, pending approval from the regulator.
First Insurance Limited, which began operations in mid-2018, primarily offers loan protection and funeral insurance to FCU members. As one of New Zealand’s largest credit unions, FCU distributes FIL’s products and provides all related services for a fee, with FIL itself having no direct employees. Despite the portfolio transfer, FIL remains open to new business until the transfer is finalized.
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