Our Financial Strength

When it comes to choosing an insurance company, you should be able to trust your provider.  Cigna New Zealand is in a strong financial position, so we’re better able to protect you in times of need.  This can be seen with our Financial Rating and Solvency Standard.

Our Financial Rating

We’re pleased to announce that we have earned an A- (Excellent) financial strength rating from A.M. Best Company Inc, an insurance rating provider.

Please visit www.ambest.com for more information.

The rating AM Best rating scale is:

Cigna's Financial Rating & Strength

 

Solvency Standard

A Solvency Standard states that we have to hold a minimum amount of capital, so that we’re in a position to pay claims to our customers during unexpected events (such as earthquakes or pandemics).

All licensed insurance companies must meet the Solvency Standard for Life Insurance Businesses.  This is set by the Reserve Bank of New Zealand.

Cigna New Zealand Limited’s Solvency

We hold more than the minimum standard of capital with a very strong Solvency Margin.

As at 30 June 2016, the Minimum Solvency Capital required to be held by Cigna Life Insurance New Zealand Limited ("Cigna NZ") under the Reserve Bank of New Zealand's Solvency Standards for Life and Non-Life Insurance Business was $42.125m. The Actual Solvency Capital held by Cigna NZ as at 30 June 2016 was $91.750m, representing a Solvency Margin of $49.625m and a Solvency Ratio of 218% of the minimum level of capital required.

The breakdown of these calculations between the Statutory Fund and the Shareholder Fund is shown in the following table:

All figures are rounded to the nearest $000

 

Statutory Fund as at 30 June 2016

$’000

Shareholder Fund as at 30 June 2016

$’000

Aggregate for Cigna NZ as at 30 June 2016

$’000

Actual Solvency Capital

83,604

8,146

91,750

Minimum Solvency Capital

37,723

4,403

42,125

Solvency Margin

45,881

3,743

49,625

Solvency Ratio

222%

185%

218%

 

Statutory Fund Notification

Cigna is required under the Insurance (Prudential Supervision) Act 2010 to establish a Statutory Fund.  For all Cigna's life insurance policyholders whose life policies were issued before 1 January 2013 we advise that the Statutory Fund relevant to your policies is Cigna's Statutory Fund Number One.

 

The information on this website is important and should help you decide on your insurance needs.  Should you require more information regarding investments or financial planning, you should consult a financial advisor.