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

Global rating agency, S&P Global Ratings, has been engaged to rate the entities.

The current ratings are:

  • MIS A-/Stable (expressed as a Financial Strength Rating)
  • MLA A-/Stable (expressed as a Financial Strength Rating)

S&P Global 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 Global Ratings. A rating is not a statement of fact, an endorsement of the rated entity, or a recommendation to buy, hold, or sell securities. Ratings are subject to change. Further information is available on the website of S&P Global Ratings 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 and are required to disclose their solvency margins. The most recent solvency returns filed with the Reserve Bank of New Zealand are for the half year ending 30 September 2016, the solvency details at 30 September were:  

 

MIS

MLA

Actual Solvency Capital

$40,166,256

$47,025,877

Minimum Solvency Capital

$14,266,521

$38,460,950

Solvency Margin

$25,939,725

$8,564,927

Solvency Ratio

2.82

1.22

 

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.