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)

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


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%