Fitch Rating Scale
| Category | Definition |
|---|---|
| AAA | An insurer rated 'AAA' has extremely strong financial security characteristics. 'AAA' is the highest insurer financial strength rating assigned by Fitch Ratings. |
| AA | An insurer rated 'AA' has very strong financial security characteristics, differing only slightly from those rated higher. |
| A | 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. |
| BB | An insurer rated 'BB' or lower is regarded as having vulnerable characteristics that may outweigh its strengths. 'BB' indicates the least degree of vulnerability within the range 'CC' the highest. |
| B | An insurer rated 'B' has weak financial security characteristics. Adverse business conditions will likely impair its 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. |
| CC | An insurer rated 'CC' has extremely weak financial security characteristics and is likely not to meet some of its financial commitments. |
| SD and D | An insurer rated 'SD' (selective default) or 'D' is in default on one or more of its 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 Fitch Ratings believes that the default will be a general default and that the obligor will fail to pay substantially all of its obligations in full in accordance with the policy terms. An 'SD' rating is assigned when Fitch Ratings believes that the insurer has selectively defaulted on a specific class of policies but it will continue to meet its 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 defences are not considered defaults. |
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”) 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 2024, was as follows:
| Asteron Life Statutory Fund 1 | Asteron Life Entire Insurer | |
|---|---|---|
| Solvency Capital | $800.06m | $809.45m |
| Adjusted Prescribed Capital Requirement | $736.07m | $738.34m |
| Adjusted Solvency Margin | $63.99m | $71.11m |
| Adjusted Solvency Ratio | 109% | 110% |