Asteron Life is set to strengthen Resolution Life’s presence in New Zealand, helping it become the second-largest life insurer in the country by premium, according to a recent assessment by Fitch Ratings.
While Asteron Life is smaller in scale compared to Resolution Life’s Australian operations, it is expected to play a strategic role in the New Zealand arm of Resolution Life NOHC. When combined with Resolution Life Australasia Limited’s New Zealand unit, Asteron Life will solidify its position as a leading player in the New Zealand life insurance market.
Fitch Ratings also reported that Asteron Life remains financially strong, maintaining a solvency margin of NZ$54 million (US$31.15 million) and a solvency ratio of 1.07x for the fiscal year ending June 2024.
The insurer’s investment risk is deemed low, as it maintains a conservative investment portfolio focused on cash and high-quality fixed-income assets. However, Asteron Life’s earnings have seen a decline, with net profit after tax dropping to NZ$7.1 million (US$4.10 million) in FY24 from NZ$30.3 million (US$17.48 million) in FY23. The decrease is largely attributed to changes in assumptions and one-off expenses.
Asteron Life’s financial outlook will be heavily influenced by the completion of the ongoing Nippon Life transaction and its integration into the broader group. If the deal goes through, the enhanced credit quality of the new parent company is expected to lead to a ratings upgrade for Asteron Life.
(Note: Exchange rate used is $1.00 = NZ$1.73)
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