Financial Strength and Solvency
Financial Strength Rating
The Reserve Bank of New Zealand has granted Foundation Life an exemption under section 60 (2A) of the Insurance (Prudential Supervision) Act 2010 from having to hold a current financial strength rating.
Solvency Margin
The solvency requirements for the Company under the Insurance (Prudential Supervision) Act 2010 are shown below.
The solvency capital and the adjusted prescribed capital requirement are determined according to the solvency standards issued by the Reserve Bank of New Zealand. This is adjusted for any minimum solvency margin imposed by the Reserve Bank of New Zealand on the Company. A condition of the Company’s licence is to maintain a minimum solvency margin in its statutory fund of $3m.
As at 31 December 2025 the adjusted solvency margin was $10.319m.
| Statutory Fund as at 31 December 2025 $000 |
Non-Statutory Fund as at 31 December 2025 $000 |
Entire Insurer as at 31 December 2025 $000 |
|
|---|---|---|---|
Solvency Capital |
18,269 | 50 | 18,319 |
Adjusted Prescribed Capital Requirement |
8,000 | - | 8,000 |
Adjusted Solvency margin |
10,269 | 50 | 10,319 |
Solvency ratio |
228% | 20000% | 229% |