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.