Financial Strength Rating & Solvency Margin

Solvency Margin

 

Pacific International Insurance Pty Ltd is required to maintain capital in excess of the minimum solvency capital requirement specified by the Reserve Bank of New Zealand (RBNZ).

 

Under the Solvency Standard for Non-life Insurance Business issued by the RBNZ, to retain a positive solvency margin means that the actual solvency capital position exceeds the minimum required under the Solvency Standard. The solvency information below is required to be disclosed in compliance with the “Solvency Standard”.

 

In its Annual Solvency Return filed with the Reserve Bank of New Zealand and APRA (Australia), Pacific International Insurance Limited had a Solvency Margin as at 30 June 2021 as follows:

 

Actual Solvency Capital: AUD 24,710,000

Minimum Solvency Capital: AUD 8,380,000

Solvency Margin: AUD 16,330,000

Solvency Ratio: 294.87%

 

Pacific International Insurance uses Tier 1 Capital.  

 

Financial Strength Rating

 
Pacific International Insurance Pty Ltd has a B++ (Good) Financial Strength Rating from the USA rating agency A.M. Best. The rating is reviewed by A.M. Best on an annual basis, with the rating scale outlined in the table below.
 
A.M. Best’s Issuer Credit Rating (ICR) Scale: ICR Scale Guide
 
A.M. Best’s Issuer Financial Strength (FSR) Scale: FSR Scale Guide
 
A.M. Best is an approved rating agency under the Insurance (Prudential Supervision) Act 2010.
 

Rating Scale – FSR 

Secure

A++ and A+ Superior
A and A- Excellent
B++ and B+ Good

Vulnerable

B and B- Fair
C++ and C+ Marginal
C and C- Weak
D Poor
E Under Regulatory Supervision
F In Liquidation
S Suspended