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”.

As required under the Insurance (Prudential Supervision) Act 2010, Pacific International Insurance’s half-yearly Solvency Return filed with RBNZ on 31 December 2019 was:

Actual Solvency Capital: AUD 15,226,000

Minimum Solvency Capital: AUD 5,867,000

Solvency Margin: AUD 9,359,000

Solvency Ratio: 259.52%

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 


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


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