Partners Life’s capitalisation to remain at ‘strongest level’ in medium term

Its in-force portfolio and consistent investment returns have been favourable.

New Zealand-based Partners Life Limited’s (Partners Life) performance metrics are seen to stabilise to remain supportive of the adequate assessment over the medium term, AM Best said.

Partners Life’s balance sheet strength is supported by robust risk-adjusted capitalisation, which AM Best expects to remain at the strongest level over the medium term, as measured by Best’s Capital Adequacy Ratio (BCAR). 

Strong financial flexibility and a conservative investment strategy further bolster its balance sheet, although reliance on third-party reinsurance for risk transfer and upfront commission financing partially offsets these strengths.  

Operating performance is assessed as adequate, despite volatility in recent periods. 

Whilst Partners Life reported an operating loss in fiscal year 2024, with a return-on-equity (ROE) ratio of -2.0%, this was primarily attributed to lower insurance service results.

Historically, the company has demonstrated positive earnings driven by favourable performance of its in-force portfolio and consistent investment returns.