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:
Secure
Vulnerable
A++
A+
Superior
B
B-
Fair
A
A-
Excellent
C++
C+
Marginal
B++
B+
Good
C
C-
Weak
D
Poor
E
Under regulatory Supervision
F
In Liquidation
S
Suspended
Solvency Standard
All licensed insurance companies must meet the solvency standards for insurance business as set by the Reserve Bank of New Zealand. These solvency standards state that we must hold a minimum amount of solvency capital, so that we’re in a position to pay claims to our customers during unexpected events (such as earthquakes or pandemics).
Our Solvency Margin
The Solvency Margin of Cigna NZ as at 31 December 2019 is $14.3m. The table below shows how the Solvency Margin is made up:
Statutory Fund $000’s
Shareholder Fund $000’s
Aggregate for Cigna NZ $000’s
Actual Solvency Capital
54,298
7,934
62,232
Minimum Solvency Capital
43,400
4,538
47,938
Solvency Margin
10,898
3,396
14,294
Solvency Ratio
125%
175%
130%
The Actual Solvency Capital and the Minimum Solvency Capital are determined according to the solvency standards issued by the Reserve Bank of New Zealand.
Solvency Margin is the difference between the Actual Solvency Capital and Minimum Solvency Capital. Solvency Ratio is the Actual Solvency Capital divided by the Minimum Solvency Capital, expressed as a percentage.
Statutory Fund Notification
Cigna is required under the Insurance (Prudential Supervision) Act 2010 to establish a Statutory Fund. For all Cigna NZ's life insurance policyholders, we advise that the Statutory Fund relevant to your policies is Cigna NZ's Statutory Fund Number One.
Cigna New Zealand after combining with OnePath Life
On 31 January 2020, all of the assets and liabilities of OnePath Life (NZ) Limited, a sister company of Cigna New Zealand, were transferred to the Cigna New Zealand, after obtaining necessary consents and approvals, including those from the Reserve Bank of New Zealand.
The table below shows how the Solvency Margin of Cigna New Zealand as at 31 March 2020, reflecting its solvency position after the transfer:
Statutory Fund $000’s
Shareholder Fund $000’s
Aggregate for Cigna NZ $000’s
Actual Solvency Capital
714,321
11,423
725,744
Minimum Solvency Capital
621,682
5,377
627,059
Solvency Margin
92,639
6,046
98,685
Solvency Ratio
115%
212%
116%
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.