Financial strength rating and solvency margin

IAG New Zealand Limited

Financial strength rating

IAG New Zealand Limited (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 on the scale below.

The rating scale 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 rating categories.

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 2017 as follows:

Life $m​ Non-life $m​ Total $m​
Actual Solvency Capital 0.1 631.2​ 631.3
Minimum Solvency Capital 0.1 ​359.2 ​359.3
​Solvency Margin 0.0 272.0 272.0
Solvency Ratio 121.8% 175.7% 175.7%


The Fair Insurance Code

The Fair Insurance Code is a code of practice that sets minimum service standards for insurance companies and describes the responsibilities that customers and their insurance company have to each other.

For information on the Fair Insurance Code, please view the Insurance Council of New Zealand website. 

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