0800 650 149

34a Taharoto Rd, Takapuna, Auckland 0622
PO Box 31-914, Milford, Auckland 0741

Solvency Margin

Solvency - what it means and why it's important

As a licensed insurance company in New Zealand, NZDIS is required to meet the Solvency Standard for life insurance business set by the Reserve Bank of New Zealand.

Solvency Standard

The Solvency Standard sets out the amount of capital a life insurance company is required to hold to meet its long-term liabilities under adverse conditions. These liabilities include insurance claims that the company is expected to pay to its customers.

NZDIS's Solvency Margin

The NZ Dental Insurance Society Ltd (NZDIS) is a licenced insurer under the Insurance (Prudential Supervision) Act 2010. From December 2012 the Company was required to maintain a solvency margin of $0. As at 30 September 2020 the solvency margin was:

  2020 2019
Actual solvency capital $855,154 $972,135
Minimum solvency capital $240,735 $257,148
Solvency margin $614,419 $714,987
Solvency coverage ratio 355% 378%

Financial Strength Rating

Under the Insurance (Prudential Supervision) Act 2010 NZ Dental Insurance Society Ltd is not required to have a current financial strength rating as it is exempted as a small insurer.

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