Float candidate CBL Insurance set for credit rating upgrade by...

Float candidate CBL Insurance set for credit rating upgrade

by Sarah Thompson Anthony Macdonald Jake Mitchell


ASX-hopeful CBL Insurance is tipped to be upgraded by insurance industry ratings house A.M. Best ahead of its slated initial public offering.
At introductory investor meetings last week, CBL told Australian fund managers it was rated B+ (Good) and had a BBB- issuer credit rating with a positive outlook by A.M. Best.
However it is understood the rating has been under review and is expected to be lifted as early as this week.
It would be some positive news for CBL, which is tipped for a $NZ120 million to $NZ140 million initial public offering before the August reporting season.
The financial, credit risk and bonding company had $NZ242 million ($232 million) gross written premiums last calendar year and made a $NZ36 million operating profit.
It told potential investors gross writer premium had increased 42 per cent each year over the past five years, on a compounded basis, and 55 per cent including acquisitions. Profit grew at 65 per cent a year over the same timeframe.
UBS is handling the float.