1 Feb 2013

Civic Assurance credit rating

7:49 am on 1 February 2013

Credit rating agency, A.M. Best Asia-Pacific has reaffirmed the creditworthiness of the insurer for councils in New Zealand at BB+, but warns it may be downgraded in future.

AM Best placed Civic Assurance under review in July last year, reflecting a potential dispute between Civic Assurance and one of its reinsurers over the earthquakes in Christchurch.

It says the company`s financial position could be put under pressure if it does not get full payment for the cover it believes it's reinsured for.

While there's been a fall in the balance of reinsurance owed, the agency says the rating remains under review because the balance is still sizable relative to the company`s capital position.