Financial Strength and Solvency
A- (Excellent)
Foundation Life (NZ) Limited has an A- (Excellent) Financial Strength Rating from A.M. Best, effective 3 September 2020.
The rating scale
Secure |
Vulnerable |
| A++, A+ (Superior) A, A- (Excellent) B++, B+ (Good) |
B, B- (Fair) C++, C+ (Marginal) C, C- (Weak) D (Poor) E (Under Regulatory Supervision) F (In Liquidation) S (Suspended) |
| For the latest rating, access www.ambest.com. This rating should not be read as a recommendation. | |
Solvency Margin
The minimum solvency capital required to be retained to meet solvency requirements under the Insurance (Prudential Supervision) Act 2010 are shown below. As at 30 September 2020 the solvency margin is $32.614 million.
| Statutory Fund as at 31 Mar 2020 $000 |
Non-Statutory Fund as at 31 Mar 2020 $000 |
Aggregate for FLNZ as at 31 Mar 2020 $000 |
|
|---|---|---|---|
Actual solvency capital |
37,560 | 54 | 37,614 |
Minimum solvency capital |
2,920 | - | 5,000 * |
Solvency margin |
34,640 | 54 | 32,614 |
RBNZ minimum solvency margin |
(15,000) ** | - | - |
Margin in excess of required minimum |
19,640 | 54 | 32,614 |
Solvency ratio |
1286% | 20000% | 752% |
* The company is required to hold $5m minimum solvency capital at the company level.
** A condition of Foundation Life (NZ) Limited's licence is to maintain a minimum solvency margin in its statutory fund of $15 million.