Sovereign has been awarded an A+ financial strength rating for the tenth year running, by ratings agency AM Best.
The agency also removed the insurer’s ‘review with developing implications’ status, which it applied in anticipation of AIA Group’s purchase of Sovereign completed in July 2018.
Sovereign received a Long-Term Issuer Credit Rating of ‘aa-’, with the agency assigning a stable outlook to these credit ratings.
“An insurer’s financial rating is a direct reflection of its ability to pay claims,” says Sovereign’s Chief Financial Officer, Linda Page.
“Sovereign’s A+ rating, combined with the fact that AIA Group is one of the largest life insurers in the world, gives our customers the certainty they want that we will be able to honour our commitment to them.”
In the 12 months to 30 June 2018, Sovereign paid $388 million in claims.
AM Best stated in a release that, “The ratings reflect Sovereign’s balance sheet strength, which AM Best categorizes as very strong, as well as its strong operating performance, favourable business profile and appropriate enterprise risk management. In addition, Sovereign benefits from rating enhancement from AIA.”
Sovereign will begin operating under the AIA brand during 2019.