Asteron Life to strengthen Resolution Life: Fitch Ratings

Asteron Life will form the second-largest life insurer in the country by premium.

Asteron Life is expected to play a strategic role in Resolution Life NOHC’s New Zealand operations, despite its smaller scale compared to the Australian business, Fitch Ratings said.

Together with Resolution Life Australasia Limited’s New Zealand unit, Asteron Life will form the second-largest life insurer in the country by premium. 

The insurer remains well-capitalised, with a solvency margin of $31.15m (NZ$54m) and a solvency ratio of 1.07x as of the financial year ending June 2024, assessed Fitch Ratings. 

Its investment risk is low, with a conservative portfolio focused on cash and high-quality fixed-income assets. However, earnings have moderated, with net profit after tax falling to $4.10m (NZ$7.1m) in FY24 from $17.48m (NZ$30.3m) in FY23, primarily due to assumption changes and one-off expenses.  

Asteron Life’s financial profile will largely depend on the completion of the Nippon Life transaction and its integration into the broader group.

If finalised, the stronger credit quality of the new parent company is expected to lead to an upgrade in Asteron Life’s ratings.

($1.00 = NZ$1.73)