About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   depositrates.co.nz  |   landlords.co.nz
Last Article Uploaded: Monday, January 26th, 10:22PM
rss
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

 

print

Printable version  

print

Email to a friend
Strategy Thoughts

Tip from the top

Fidelity Income Protection
Changes to the wording make it easier to issue policies, but advisers should be careful about proof of income.

News Bites
Latest Comments
  • Demand for simpler trauma policies
    “The Lifecare product that Fidelity offer is a good way around the problem. I think a lot of people do not understand it. Appreciate...”
    5 days ago by Wall
  • Time to address advice accessibility: Body
    “The problem is that you can give an adviser as much technical ability and education as you like, but in the end it comes...”
    5 days ago by traveller
  • Investors told: Don't bail out just yet
    “Gibbson, I've just spent almost a month in the USA. Both the east and west coasts. Things looked pretty good to me. ...”
    6 days ago by John Milner
  • Time to address advice accessibility: Body
    “Let’s be honest – much of this CPD business is a waste of time for numerous reasons. In NZ some CPD is sponsored by...”
    6 days ago by Brent Sheather
  • Self-regulation a focus for 2015
    “Not sure about the case for the "international move to encourage self-regulation". The Canadian association may be advocating...”
    6 days ago by dcwhyte
Subscribe Now

Cover Notes - Specific news aimed at risk advisers

Previous News

MORE NEWS»

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