Financial strength rating & Solvency

Financial strength rating


Southern Cross Benefits Limited has an A (Strong) financial strength rating given by Standard & Poor’s (Australia) Pty Limited. A rating of A means Southern Cross Benefits Limited has a ‘strong’ claims-paying ability.

The rating scale is:

AAA (Extremely Strong) AA (Very Strong) A (Strong)
BBB (Good) BB (Marginal) B (Weak)
CCC (Very Weak) CC (Extremely Weak) SD or D (Selective Default or Default)
R (Regulatory Action) NR (Not Rated)

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. Full details of the rating scale are available at Standard & Poor’s is an approved rating agency under the Insurance (Prudential Supervision) Act 2010.

Solvency margin

In the Solvency Return filed with the Reserve Bank of New Zealand, Southern Cross Benefits Limited had a Solvency Margin at 30 June 2019 and in the half year as at 31 December 2018 as follows:

30 Jun 2019 31 Dec 2018
$000 $000
Minimum solvency capital 12,039 10,791
Actual solvency capital 18,146 19,925
Solvency margin 6,107 9,134
Solvency ratio 1.51 1.85

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