AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” (Good) of Beneficial Insurance Limited (Beneficial) (New Zealand). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Beneficial’s balance sheet strength, which AM Best assesses as adequate, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.

Beneficial’s balance sheet strength assessment is underpinned by its strongest level of risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), supported by robust internal capital generation and appropriate retention of earnings. AM Best also assesses the company as having a conservative investment strategy. Offsetting balance sheet strength factors include Beneficial’s small absolute capital base, which is viewed to be susceptible to volatility in stress scenarios and to material negative deviations in future operating earnings compared to expectations. AM Best’s balance sheet strength analysis also incorporates a neutral holding company impact from the company’s ownership by Beneficial Holdings Limited.

AM Best assesses Beneficial’s operating performance as strong. The assessment reflects its track record of strong operating performance metrics. In fiscal year 2026, the company reported a combined ratio (net/net, IFRS 17) of 69.0% and return-on-equity ratio of 38.6%. Profitability is driven by the favourable underwriting performance of Beneficial’s core pet insurance portfolio. Investment income remains a stable contributor to the company’s overall profits, with a net investment yield of 4.7% in fiscal year 2026. Prospectively, AM Best expects Beneficial to maintain its strong operating performance, supported by its robust underwriting profits and positive investment income.

AM Best views Beneficial’s business profile to be limited, largely reflecting its small-scale operations and limited product and geographic diversifications. The company is a niche insurer with good market presence in the pet insurance sector in New Zealand, albeit maintaining a small overall market share in the domestic general insurance industry. Beneficial’s product risk profile is considered low given its focus on pet insurance, which generally is less exposed to large losses and catastrophe events.

Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Media gallery

About The Author
Business Wire