First Insurance Limited remains stable amidst looming portfolio transfer: Fitch

The insurer remains open to new business until the transfer.

The financial profile of New Zealand insurer First Insurance Limited (FIL) will remain intact despite plans to transfer its insurance portfolio to external insurers, Fitch Ratings said.

First Credit Union (FCU) parent company of FIL, aims to transfer the portfolio by end-March 2025 to Provident Insurance Corporation Limited and Pinnacle Life Limited. FCU has engaged the insurance regulator, the Reserve Bank of New Zealand, in this regard.

FCU plans to request the regulator to cancel FIL's insurance licence after the portfolio is transferred. It says that it will not change FIL's capital structure until the licence is cancelled, which is subject to the regulator's approval.

FIL began operations in mid-2018 and underwrites loan protection and funeral insurance for FCU members. FCU is one of New Zealand's largest credit unions. FIL's products are distributed by FCU and it has no direct employees. FCU also performs all services for a fee.