Westpac Life Solvency and Financial Strength Rating

Westpac Life Solvency

As at 30 September 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 $127,876,000. The Actual Solvency Capital held by Westpac Life as at 30 September 2016 was $211,829,000, representing a Solvency Margin of $83,953,000. 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 30 September 2016
$'000
Shareholder Fund
as at 30 September 2016
$’000
Aggregate for all Funds
as at 30 September 2016
$’000
Actual Solvency Capital 204,132 7,697 211,829
Minimum Solvency Capital 126,943 933 127,876
Solvency Margin 77,189 6,764 83,953
Solvency Ratio 161% 825% 166%

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