About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   depositrates.co.nz  |   landlords.co.nz
Last Article Uploaded: Friday, October 9th, 4:15PM
Latest Headlines

RSA's solvency OK

Royal & SunAlliance says it has come through the post-September 11 financial ructions unscathed and its solvency position is as strong as it was last December.

Wednesday, October 10th 2001, 11:42PM

Royal & SunAlliance New Zealand chief executive Alan Bradley has played down a media report that the insurer’s British parent is operating close to regulatory solvency limits.

London’s Sunday Telegraph last month quoted an insurance analyst as saying RSA's UK solvency position was "strongly negative".

The comments came after Britain’s Financial Services Authority (FSA) relaxed a test for solvency in the wake of the world share market dive post September 11.

However, the FSA emphasised that negative solvency in life insurance terms was not the same as being insolvent in ordinary corporate terms.

An insurer could be near the edge of its solvency margin but not be in danger of going bust.

RSA chief actuary Mike Kipling told the Telegraph that the insurer was meeting its regulatory solvency margin.

Bradley says the RSA group is a well-established company and its chief actuary would not make such comments unless he meant them.

In addition, the New Zealand subsidiary’s investments are in a statutory fund.

It also adheres to prudential reserving guidelines set by the NZ Society of Actuaries.

"Our New Zealand business is well capitalised," he says.

"We’ve had a look at the solvency of our life business since the September 11 events and it’s basically the same as it was at the end of December last year.

"I was very pleasantly surprised, because it wouldn’t have been a tremendous shock if there had been a dip, given the huge impact on world equity markets," Bradley says.

« Hellaby's stake in Club Life to shrinkDisability news gets worse »

Special Offers

Commenting is closed



Printable version  


Email to a friend
Strategy Thoughts
News Bites
Latest Comments
  • Milestone gets military contract
    “Well done to Milestone, Strategi and NZDF for working out how to deliver a mass advice solution that presumably works for...”
    4 days ago by MPT Heretic
  • Milestone gets military contract
    “I always get suspicious when Financial Advisors talk about “wellness and wellbeing”. Would love to see one of their...”
    5 days ago by Brent Sheather
  • Milestone gets military contract
    “I must admit to feeling uncomfortable about the appointment in two ways; Competing against the very company I exclusively...”
    5 days ago by John Milner
  • Synergy appoints former Sovereign man
    “Congratulations Aaron I know the Sovereign advisers will miss your input and assistance - I am sure you'll enjoy the Consilium/FANZ...”
    5 days ago by gavin austin adviser business compliance
  • AML due diligence puts clients off
    “AML documentation has definitely put off at least two older clients with larger sums. Trust Deeds, changed trustees, ID for...”
    7 days ago by Grandpa
Subscribe Now

Cover Notes - Specific news aimed at risk advisers

Previous News


Most Commented On
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
Site by Web Developer and eyelovedesign.com