Fidelity Life Assurance’s outlook remains stable, boosted by capital

AM Best expects the company to maintain adequate operating performance.

Fidelity Life Assurance’s (New Zealand) outlook remains stable, thanks to strong capital position and stable operating performance, AM Best assessed.

As of 30 June last year, its risk-adjusted capitalisation was at the strongest level, based on Best’s Capital Adequacy Ratio (BCAR). 

AM Best expects Fidelity Life Assurance to maintain adequate operating performance despite higher costs from system infrastructure investments and the acquisition of Westpac Life-NZ-Limited. 

The company reported a return on equity of 5.9% and a net investment yield of 5.6% in fiscal year 2024. These metrics are projected to remain stable over the medium term.