Financial Strength Ratings

Two of the MAS operating subsidiaries are required by legislation to have financial strength ratings.

The rating requirements of Medical Insurance Society Limited (MIS), the general insurer and Medical Life Assurance Society Limited (MLA), the life insurer, are governed by the Insurance (Prudential Supervision) Act 2010. 

Approved rating agency, S&P Global Ratings Australia Pty Ltd (“S&P”), has been engaged to rate the entities.

The current ratings are:

  • MIS A
  • MLA A

S&P’s ratings range from AAA (extremely strong) to D (in default). This scale is set out in the table below.

Investment
Grade
Ratings

AAA

Extremely Strong

AA+
AA
AA-

Very Strong

A+
A
A-

Strong

BBB+
BBB
BBB-

Adequate

Speculative
Grade
Ratings

BB+
BB
BB-

Less Vulnerable

B+
B
B-

More Vulnerable

CCC+
CCC
CCC-

Currently Vulnerable

CC

Currently Highly Vulnerable

 

D

In Default

Ratings are statements of opinion issued by S&P. A rating is not a statement of fact or an endorsement of the rated entity. Ratings are subject to change. Further information is available on the website of S&P at http://www.standardandpoors.com.

Solvency margins

Medical Life Assurance Society Limited ("MLA") and Medical Insurance Society Limited ("MIS") are licensed insurers under the Insurance (Prudential Supervision) Act 2010. Details on the most recent solvency returns filed with the Reserve Bank of New Zealand are:

 30 September 2024 solvency position:

MIS

MLA

Solvency capital $000

 $79,806 $225,359

Adjusted prescribed capital requirement $000

 $32,614 $207,460

Adjusted solvency margin $000

 $47,192 $17,900

Adjusted solvency ratio

 245% 109%

MLA's statutory fund (Medical Life Assurance Statutory Fund) encompasses all the assets and liabilities of MLA. As such, the solvency margin and ratio for the statutory fund is the same as for the Company.