Fitch Rating Scale
| Category | Definition |
|---|---|
| AAA: Exceptionally Strong | ‘AAA’ IFS ratings denote the lowest expectation of ceased or interrupted payments. They are assigned only in the case of exceptionally strong capacity to meet policyholder and contract obligations. This capacity is highly unlikely to be adversely affected by foreseeable events. |
| AA: Very Strong | ‘AA’ IFS ratings denote a very low expectation of ceased or interrupted payments. They indicate very strong capacity to meet policyholder and contract obligations. This capacity is not significantly vulnerable to foreseeable events. |
| A: Strong | ‘A’ IFS ratings denote a low expectation of ceased or interrupted payments. They indicate strong capacity to meet policyholder and contract obligations. This capacity may nonetheless be more vulnerable to changes in circumstances or in economic conditions than is the case for higher ratings. |
| BBB: Good | ‘BBB’ IFS ratings indicate that there is currently a low expectation of ceased or interrupted payments. The capacity to meet policyholder and contract obligations on a timely basis is considered adequate, but adverse changes in circumstances and economic conditions are more likely to impact this capacity. |
| BB: Moderately Weak | ‘BB’ IFS ratings indicate that there is an elevated vulnerability to ceased or interrupted payments, particularly as the result of adverse economic or market changes over time. However, business or financial alternatives may be available to allow for policyholder and contract obligations to be met in a timely manner. |
| B: Weak | B’ IFS ratings indicate there is significant risk that ceased or interrupted payments could occur in the future, but a limited margin of safety remains. Capacity for continued timely payments is contingent upon a sustained, favorable business and economic environment and favourable market conditions. |
| CCC: Very Weak | ‘CCC’ IFS ratings indicate two possible conditions. If obligations are still being met on a timely basis, there is a real possibility that ceased or interrupted payments could occur in the future. Capacity for continued timely payments is solely reliant upon a sustained, favorable business and economic environment and favorable market conditions. Alternatively, a ‘CCC’ IFS rating is assigned to obligations that have experienced ceased or interrupted payments and with the potential for outstanding to superior recoveries. Such obligations would possess a recovery assessment of ‘RR1’ (Outstanding) or ‘RR2’ (Superior). |
| CC: Extremely Weak | ‘CC’ IFS ratings indicate two possible conditions. If obligations are still being met on a timely basis, it is probable that ceased or interrupted payments will occur in the future. Alternatively, a ‘CC’ IFS rating is assigned to obligations that have experienced ceased or interrupted payments, with the potential for good recoveries. Such obligations would possess a recovery assessment of ‘RR3’ (Good). |
| C: Distressed | ‘C’ IFS ratings indicate two possible conditions. If obligations are still being met on a timely basis, ceased or interrupted payments are imminent. Alternatively, a ‘C’ IFS rating is assigned to obligations that have experienced ceased or interrupted payments and with the potential for average to poor recoveries. Such obligations would possess a recovery assessment of ‘RR4’ (Average), ‘RR5’ (Below Average) or ‘RR6’ (Poor). |
Note: "+" or "-" may be appended to a rating to indicate the relative position of a credit within the rating category. Such suffixes are not added to ratings in the AAA category or to ratings below the CCC category.
Solvency margin
The Reserve Bank of New Zealand (“RBNZ”) Interim Solvency Standard requires Asteron Life Limited (“Asteron Life”), as a licensed insurer, to disclose Asteron Life’s current Adjusted Solvency Margin for each Statutory Fund from its most recent solvency return.
In its Interim Solvency Return filed with the Reserve Bank of New Zealand, Asteron Life Limited’s solvency position, as at 31 December 2025, was as follows:
| Asteron Life Statutory Fund 1 | Asteron Life Entire Insurer | |
|---|---|---|
| Solvency Capital | $695.78m | $698.45m |
| Adjusted Prescribed Capital Requirement | $663.15m | $664.03m |
| Adjusted Solvency Margin | $32.63 | $34.41m |
| Adjusted Solvency Ratio | 105% | 105% |