For insurance policies taken out before 23 January 2020, please see the details below.
MARAC Insurance Limited is exempt from the requirement to have a current Financial Strength Rating under s60(2A) of the Insurance Prudential Supervision Act 2010.
The Insurance (Prudential Supervision) Act 2010 requires life insurers such as Marac Insurance Limited to hold a minimum amount of capital.
Marac Insurance Limited maintains a Solvency Margin for its Statutory fund and the entity as a whole,
which is calculated as the difference between Solvency Capital and the Prescribed Capital Requirement.
The methodology and basis for determining the solvency margin are in accordance with the Interim Solvency
Standard 2023 issued by the Reserve Bank of New Zealand.
The following table shows a breakdown of Marac Insurance Limited’s solvency margins as at 30 June 2024.
| $000's |
Life (Statutory fund) |
Total Marac |
| Audited 30 June 2024 |
|
| Solvency Capital |
747 |
6,344 |
| Prescribed Capital Requirement |
5,000 |
5,000 |
| Solvency Margin |
(4,253) |
1,344 |
| Solvency Ratio |
15% |
127% |
As at 30 June 2024 Marac Insurance Limited had total Solvency Capital in excess of the Prescribed Capital Requirement. As at 30 September 2024 capital was paid into the Statutory Fund to meet the Prescribed Capital Requirement for the Statutory Fund. This did not impact Total Capital.
