Solvency Margin

In its Half-Yearly Solvency Return filed with the Reserve Bank of New Zealand, IAG New Zealand Limited had a Solvency Margin as at 31 December 2017 as follows:

Life
$m
Non-Life
$m
Total
$m
Actual Solvency Capital 0.1 608.6 608.7
Minimum Solvency Capital 0.1 334.6 334.7
Solvency Margin 0.0 274.0 274.0
Solvency Ratio 121.8% 181.9% 181.9%

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.