AM Best Credit Ratings for Veterinary Professionals Insurance Society Incorporated

SINGAPORE, July 25, 2022–(BUSINESS WIRE)–AM Best has assigned a Financial Strength Rating of B (Fair) and a Long-Term Credit Rating of “bb+” (Fair) to Veterinary Professionals Insurance Society Incorporated (VPIS) (New Zealand). The ratings given to the Credit Ratings (ratings) are fixed.

These ratings reflect the strength of the VPIS paper, which AM Best considers to be comprehensive, as well as its efficiency, limited business history and sound business management.

VPIS’s balance sheet strength assessment is driven by risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), which is at a very strong level. Due to the significant increase in the requirements of VPIS’s regulatory solvency regulatory status recently, its approval position should be weakened but remain above the minimum number. In addition, the company has a small enough share of NZD 3.3 million and financial flexibility, which increases the sensitivity of its sufficient capital to stress. While the VPIS reinsurance program protects the company against one large loss and public exposure, the company appears to be heavily dependent on reinsurance.

AM Best view VPIS’ operational performance to be complete, with a five-year return on equity ratio of 6.5% (fiscal years 2017-2021). This is supported by the soundness of the company, although the combined ratio showed a high volatility during this period. VPIS’s investment ratio has risen significantly compared to the number of companies due to its growth and technology investments in recent years. Investments continue to drive the company’s operations, with a five-year yield (including gains/losses) of 5.1% (fiscal years 2017-2021).

VPIS is a not-for-profit organization that provides professional indemnity insurance specifically for veterinarians in New Zealand. An analysis of the company’s business reveals its small scale operations, focus on niche products and geographic scope. However, VPIS has a leading market position in its target sector, supported by the unique knowledge and expertise of pharmaceutical products in New Zealand.

Ratings are given to organizations that have been rated before they are published. Unless otherwise stated, the ratings have not been changed following this communication.

This article relates to the Credit Ratings published on the AM Best website. For more information on ratings related to issuance and relevant disclosures, including details of the office responsible for issuing all ratings listed in this publication, please see AM Best’s. Recent Actions Web page. For more information on the application and limitations of the Credit Rating concept, please see Best’s Credit Ratings Guide. For more information on the appropriate use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best’s social media, please see Tips for Effectively Using Quality Scores & Tests.

AM Best is a global credit agency, news publisher and data analytics provider specializing in the insurance industry. The company is headquartered in the United States, and does business in more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

Copyright © 2022 by AM Best Rating Services, Inc. and/or partners. ALL RIGHTS RESERVED.

Check out the original version on


Yi Ding
Senior Financial Analyst
+ 65 6303 5021

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159

Michael Dunckley, CFA
Director, Analytics
+ 65 6303 5020

Jeff Mango
General Manager,
Strategy & Communications
+1 908 439 2200, ext. 5204