Financial strength rating information

Our financial strength rating: A- (Excellent).

Fidelity Life has maintained an A- (Excellent) financial strength rating from A.M. Best since December 1996.

AM Best's Financial Strength Rating (FSR) Scale.

Rating categories	Rating symbols	Rating notches*	Category definitions
Superior	A+	A++	Assigned to insurance companies that have, in our opinion, a superior ability to meet their ongoing insurance obligations.
Excellent	A	A-	Assigned to insurance companies that have, in our opinion, an excellent ability to meet their ongoing insurance obligations.
Good	B+	B++	Assigned to insurance companies that have, in our opinion, a good ability to meet their ongoing insurance obligations.
Fair	B	B-	Assigned to insurance companies that have, in our opinion, a fair ability to meet their ongoing insurance obligations. Financial strength is vulnerable to adverse changes in underwriting and economic conditions.
Marginal	C+	C++	Assigned to insurance companies that have, in our opinion, a marginal ability to meet their ongoing insurance obligations. Financial strength is vulnerable to adverse changes in underwriting and economic conditions.
Weak	C	C-	Assigned to insurance companies that have, in our opinion, a weak ability to meet their ongoing insurance obligations. Financial strength is very vulnerable to adverse changes in underwriting and economic conditions.
Poor	D	-	Assigned to insurance companies that have, in our opinion, a poor ability to meet their ongoing insurance obligations. Financial strength is extremely vulnerable to adverse changes in underwriting and economic conditions.

*Each Best's Financial Strength Rating Category from "A+" to "C" includes a Rating notch to reflect a gradation of financial strength within the category. A Rating notch is expressed with either a second plus "+" or a minus "-".

AM Best's Financial Strength Non-Rating Designations.

Designation symbols	Designation definitions
E	Status assigned to insurers that are publicly placed, via court order into conservation or rehabilitation, or the international equivalent, or in the absence of a court order, clear regulatory action has been taken to delay or otherwise limit policyholder payments.
F	Status assigned to insurers that are publicly placed via court order into liquidation after a finding of insolvency, or the international equivalent.
S	Status assigned to rated insurance companies to suspend the outstanding FSR when sudden and significant events impact operations and rating implications cannot be evaluated due to a lack of timely or adequate information; or in cases where continued maintenance of the previously published rating opinion is in violation of evolving regulatory requirements.
NR	Status assigned to insurance companies that are not rated; may include previously rated insurance companies or insurance companies that have never been rated by AM Best.

Our solvency margin.

The solvency margin of Fidelity Life at 30 June 2023 was $134.3m, made up as follows:

	Statutory Fund $'000	Non-Statutory Fund $'000	Fidelity Life $'000
Actual Solvency Capital	356,782	15,147	371,929
Minimum Solvency Capital	236,762	868	237,631
Solvency Margin	120,020	14,279	134,299
Solvency Ratio	151%	1745%	157%

Actual solvency capital and Minimum solvency capital are determined in accordance with the RBNZ solvency standard for life insurance business, 2014.

Minimum solvency capital is the minimum amount of capital that must be held by a licenced life insurer.

Actual solvency capital is the amount of equity less deductions from capital held to meet solvency.

The solvency margin is actual solvency capital less minimum solvency capital.

The solvency ratio is actual solvency capital as a proportion of minimum solvency capital.