SINGAPORE–(BUSINESS WIRE)–#insurance—AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb” (Good) of Pacific International Insurance Pty Limited (Pacific) (Australia). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Pacific’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM). These ratings also factor in a neutral impact from Pacific’s ultimate owner, Badger Mutual Wealth (Pty) Ltd, an insurance group domiciled in South Africa.
The revision of the balance sheet strength assessment to strong from adequate reflects Pacific’s risk-adjusted capitalisation, which improved to the strongest level as of fiscal year-end 30 June 2025, as measured by Best’s Capital Adequacy Ratio (BCAR). AM Best expects the company’s prospective risk-adjusted capitalisation to remain at the strongest level, supported by positive earnings generation. The company is viewed as having robust financial flexibility, with a track record of capital injections. A partially offsetting factor is Pacific’s moderate dependence on reinsurance; however, the risk associated with this dependence is partly mitigated by the sound credit quality of its reinsurance panel.
AM Best views Pacific’s operating performance as adequate. Over the past five fiscal years, the company’s operating performance has exhibited an improving trend. In fiscal year 2025, the company reported a combined ratio (net/net, IFRS 17) of 95.2% and a return-on-equity of 16.6%, supported by positive underwriting performance and robust investment income. Investment income remains a stable contributor to overall earnings, with the company reporting a net investment yield of 6.2% in fiscal year 2025.
AM Best assesses Pacific’s business profile as limited, reflecting its growing, albeit still relatively modest scale of operations. The company has recorded elevated premium growth in recent years, with a significant proportion of this premium being ceded to reinsurers. Pacific’s net retained insurance portfolio predominantly consists of motor, pet cover, travel and its motor novated lease partnership with an insurance distributor. AM Best expects Pacific’s net underwriting growth to remain elevated over the medium term.
AM Best assesses Pacific’s ERM as appropriate, given the size, nature and the complexity of its operations. Nonetheless, AM Best expects ongoing strengthening of the company’s ERM capabilities to support its increasing operational scale. Regulatory compliance is expected to remain a key focus area given the large number of regulatory developments in Australia and New Zealand. Following a review by the Australian Prudential Regulation Authority (APRA) in 2024, the company remains on target with the implementation of its remediation programme, with the oversight of the regulator, which is expected to be completed in 2026.
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.
Contacts
Chee Yun
Financial Analyst
+65 6303 5019
[email protected]
Victoria Ohorodnyk
Senior Director, Analytics
+65 6303 5020
[email protected]
Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
[email protected]
Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
[email protected]
