Our solvency margin is the amount of capital we have available on top of the minimum level we have to hold, as prescribed by the Solvency Standard for Non-life Insurance Business 2014, issued by our regulator, the Reserve Bank of New Zealand (RBNZ).
Our solvency margin is $2,120K. This is the difference after our minimum solvency capital of $4,618K is subtracted from our actual solvency capital of $6,738K (August 2023). This means we have a solvency ratio of 146%.
The Insurance (Prudential Supervision) Act 2010 requires all licensed insurers to have a current financial strength rating (FSR) provided by an approved rating agency. This rating indicates whether we can meet our financial obligations, such as pay your claims.
We use A.M. Best as a rating agency, who have rated our financial strength rating at B (fair).
For a more detailed breakdown of A.M. Best’s FSR, download their guide.