Strong business position Good earnings diversity Strong capitalization Strength of parent group Softening premium rates Ongoing industry competition The ratings on Vero Insurance Ltd. (VIL) reflect its strong business position in the Australian nonlife insurance market, strong earnings performance in recent years, robust capital and reserving position, and strong financial flexibility derived from its ownership by listed company Promina group Ltd. (Promina). The nonlife market continues to be competitive, however, with the premium rate cycle softening. VIL operates under a specialized business model and focuses on particular market segments, although the insurer possesses some scale in those markets and at the consolidated group level. Its business is diversely split between corporate and retail products. Corporate products are largely distributed through
