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
$'000
Shareholder Fund
as at 31 March 2016
$’000
Aggregate for all Funds
as at 31 March 2016
$’000
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