Insurer Financial Strength Rating

AA- Financial Strength Rating

In accordance with the Insurance (Prudential Supervision) Act 2010, we are required to provide you with the following financial strength information:

Initio Limited policies are underwritten by NZI.  NZI is a business division of IAG New Zealand Ltd. IAG has received a financial strength rating of AA- from Standard & Poor’s (Australia) Pty Ltd, an approved rating agency.

A rating of AA- means IAG has a ‘very strong’ claims-paying ability, as you can see in the scale below.

 

The rating scale for S&P Global Ratings is:

AAA (Extremely Strong)
AA (Very Strong)
A (Strong)
BBB (Good)
BB (Marginal)
B (Weak)
CCC (Very Weak)
CC (Extremely weak)
SD (Selective Default)
D (Default)
R (Regulatory Supervision)
NR (Not Rated)

Note:
The Ratings from “AA” to “CCC” may be modified by the addition of a plus (+) or minus (-)  sign to show relative standing within the major ratings categories.

The rating scale above is in summary form. A full description of this rating scale can be obtained from www.standardandpoors.com.

 

Solvency margin 

In its Annual Solvency Return filed with the Reserve Bank of New Zealand, IAG New Zealand Limited had a Solvency Margin as at 30 June 2018 as follows:

Life Non-life​ Total​
$m​ ​$m ​$m
Actual Solvency Capital ​ 0.1 555.6 556.5
Minimum Solvency Capital  ​ 0.1 337.1 337.2
Solvency Margin ​ 0.0 219.3 219.3
Solvency Ratio ​ 121.8%​ 165.1%​ 165.1%