Financial Strength

Asteron Life is part of one of Australia and New Zealand's largest financial service providers with business activities in life insurance, superannuation savings, funds management and trustee services.

Financial Strength Rating Solvency Margin

Financial strength rating

The Insurance (Prudential Supervision) Act 2010 requires all licensed insurers to have a current financial strength rating that is given by an approved rating agency.

Asteron Life Limited has been given a A+ financial strength rating by Standard & Poor’s.

Public Notice of Financial Strength Rating Downgrade Asteron Life Limited
Pursuant to section 69 of the Insurance (Prudential Supervision) Act 2010, Asteron Life Limited gives notice that on 8 April 2024, Standard and Poor's (Australia) Pty Limited downgraded its financial strength rating from "AA-" (very strong) to "A+" (strong).

Standard & Poor’s Long-Term Insurer Financial Strength Ratings *

Category

Definition

AAA

An insurer rated 'AAA' has extremely strong financial security characteristics. 'AAA' is the highest insurer financial strength rating assigned by Standard & Poor's.

An insurer rated 'AA' has very strong financial security characteristics, differing only slightly from those rated higher.

An insurer rated 'A' has strong financial security characteristics, but is somewhat more likely to be affected by adverse business conditions than are insurers with higher ratings.

BBB

An insurer rated 'BBB' has good financial security characteristics, but is more likely to be affected by adverse business conditions than are higher-rated insurers.

BB, B, CCC and CC

An insurer rated 'BB' or lower is regarded as having vulnerable characteristics that may outweigh it's strengths. 'BB' indicates the least degree of vulnerability within the range 'CC' the highest.

An insurer rated 'BB' has marginal financial security characteristics. Positive attributes exist, but adverse business conditions could lead to insufficient ability to meet financial commitments.

An insurer rated 'B' has weak financial security characteristics. Adverse business conditions will likely impair it's ability to meet financial commitments.

CCC

An insurer rated 'CCC' has very weak financial security characteristics, and is dependent on favourable business conditions to meet financial commitments.

An insurer rated 'CC' has extremely weak financial security characteristics and is likely not to meet some of it's financial commitments.

SD and D

An insurer rated 'SD' (selective default) or 'D' is in default on one or more of it's insurance policy obligations. The 'D' rating also will be used upon the filing of a bankruptcy petition or the taking of similar action if payments on a policy obligation are at risk. A 'D' rating is assigned when Standard & Poor's believes that the default will be a general default and that the obligor will fail to pay substantially all of it's obligations in full in accordance with the policy terms. An 'SD' rating is assigned when Standard & Poor's believes that the insurer has selectively defaulted on a specific class of policies but it will continue to meet it's payment obligations on other classes of obligations. An SD includes the completion of a distressed debt restructuring. Claim denials due to lack of coverage or other legally permitted defenses are not considered defaults.

*Ratings from 'AA' to 'CCC' may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories.

Solvency margin

The Reserve Bank of New Zealand (“RBNZ”) Solvency Standard for Life Insurance Business requires Asteron Life Limited (“Asteron Life”), as a licensed insurer, to disclose Asteron Life’s current Solvency Margin for each Life 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 2023, was as follows:

Asteron Life Statutory Fund 1

Asteron Life Entire Insurer

Solvency Capital

Asteron Life Statutory Fund 1

$772.8m

Asteron Life Entire Insurer

$772.8m

Adjusted Prescribed Capital Requirement

Asteron Life Statutory Fund 1

$734.1m

Asteron Life Entire Insurer

$734.1m

Adjusted Solvency Margin

Asteron Life Statutory Fund 1

$38.7m

Asteron Life Entire Insurer

$38.7m

Adjusted Solvency Ratio

Asteron Life Statutory Fund 1

105%

Asteron Life Entire Insurer

105%