Financial Strength

Insurer financial strength rating

Southsure Assurance Limited has been assigned an Insurer Financial Strength rating of BBB+ by Fitch Ratings as at 5 May 2020.

 

Secure Range Vulnerable Range
AAA (Exceptionally Strong) BB (Moderately Weak)
AA (Very Strong) CCC (Very Weak)
A (Strong) CC (Extremely Weak)
BBB (Good) C (Distressed)


"+" or "-" may be appended to a rating to indicate the relative position of a credit within the rating category.

Statutory Fund

Under the Insurance (Prudential Supervision) Act 2010 Southsure Assurance Limited is required to operate at least one statutory fund and notify policyholders which statutory fund their life insurance policy is referable to. All life insurance policies underwritten by Southsure Assurance Limited are referable to Southsure Statutory Fund No. 1 ("Statutory Fund").

Solvency margin

As a licenced insurer supervised by the Reserve Bank of New Zealand, Southsure is required to maintain a minimum level of capital that meets the Solvency Standards within the Insurance (Prudential Supervision) Act 2010.

The minimum level of capital held must be in excess of either $5,000,000 or the (risk-based) calculated minimum solvency capital requirement - whichever is higher.

Southsure Assurance Limited's total solvency position at 31 March 2020 was as follows:

         Statutory Life Fund  Non-life 
Shareholder Fund 
            Company 
Actual solvency capital $1,511,091 $8,654,916 $10,166,007
Risk based calculated minimum $971,839 $6,960,263 $7,932,102
Solvency margin $539,252 $1,694,653 $2,233,905
Solvency ratio 155.5% 124.3% 128.2%