Pursuant to section 8 of the Insurance Companies
(Ratings and Inspections) Act 1994, New Zealand Local Government Insurance Corporation Limited gives notice that on Monday 18 July 2011, A.M. Best Company downgraded its financial strength rating of New Zealand Local Government Insurance Corporation Limited from
"A (Excellent)" to "B++ (Good)" and issuer credit rating
to "bbb+" from "a".
Both ratings have been removed from under review with negative implications and assigned a negative outlook.
The company is contemplating raising new capital to support its re-entry into the underwriting of catastrophe exposed business, and A.M. Best Company will revisit the company’s ratings when recapitalisation plans are finalised.