Westpac Life Solvency and Financial Strength Rating

Westpac Life Solvency

As at 31 March 2016, the Minimum Solvency Capital required to be held by Westpac Life-NZ-Limited (“Westpac Life”) under the Reserve Bank of New Zealand’s Solvency Standard for Life Insurance Business was $117,294,000. The Actual Solvency Capital held by Westpac Life as at 31 March 2016 was $188,767,000, representing a Solvency Margin of $71,473,000. The breakdown of these calculations between the Statutory Fund No.1 and the Shareholder Fund is shown in the following table:

 Statutory Fund No.1
as at 31 March 2016
Shareholder Fund
as at 31 March 2016
Aggregate for all Funds
as at 31 March 2016
Actual Solvency Capital 183,059 5,708 188,767
Minimum Solvency Capital 116,411 883 117,294
Solvency Margin 66,648 4,825 71,473
Solvency Ratio 157% 646% 161%

Westpac Life’s Financial Strength Rating

The Public Notice relating to the change in Westpac Life-NZ Limited’s financial strength rating can be accessed here.

Westpac Life-NZ-Limited has an A+ Insurer Financial Strength rating given by Standard & Poors (Australia) Pty Limited. 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 or D Default, R Regulatory Supervision, NR Not Rated. Plus (+) or Minus (-) following ratings from ‘AA’ to ‘CCC’ show relative standings within the major rating categories. For a full description of the rating scale go to: www.standardandpoors.com