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
$m
Non-Life
$m
Total
$m
Actual Solvency Capital 0.1 556.4 556.5
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%

Financial Rating

Lumley is a business division of IAG New Zealand Limited (IAG). 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 is:

AAA (Extremely Strong) 
AA (Very Strong)
A (Strong)
BBB (Good)
BB (Marginal)
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.

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