S&P Global Ratings has revised Hollard Australia’s financial risk profile to ‘very strong’, while affirming the insurer’s ‘A’ long-term financial strength and issuer credit ratings on Hollard Insurance Company (HIC) and ‘BBB+’ long-term issuer credit rating on Hollard Holdings Australia (HHA). The outlook for the issuer credit ratings remains stable.
“The revision in Hollard Australia’s financial risk profile to very strong reflects our view that its capital adequacy has strengthened,” the ratings agency noted, adding that the stronger assessment reflects higher capital resources and stronger retained earnings, alongside the issue of A$115m (approx. US$75m) in hybrid securities during fiscal 2025 (year ended June 30, 2025).
The Hollard Australia subgroup now holds capital above the 99.95% stress level under the S&P insurance capital model, a level the ratings agency expects the business to maintain over its three-year forecast period.
While Hollard’s operating performance has been modest in recent years, S&P said the insurer has reported significantly stronger earnings in fiscal 2025, and forecasts that operating performance will remain sound over the next two to three years.
The stable outlook reflects the expectation that Hollard Australia will maintain its ‘strong’ business position and ‘very strong’ financial position over the next two years, underpinned by a sound market share and a sustained improvement in its operating performance.
