Rating & Solvency

Insurance (Prudential Supervision) Act 2010

MARAC Insurance Limited has been assigned an Insurer Financial Strength rating of BBB+ (Outlook Stable) by Fitch Ratings.

A summary of the rating scale is:

Secure Range Vulnerable Range
AAA (Exceptionally Strong) BB (Moderately Weak)
AA (Very Strong) CCC (Very Weak)
A (Strong) CC (Extremely Weak)
BBB (Good) C (Distressed)

"+" or "-" may be appended to a rating to indicate the relative position of a credit within the rating category.

MARAC Insurance Limited Solvency Margin

The Insurance (Prudential Supervision) Act 2010 requires life insurers such as MARAC Insurance Limited to hold a minimum amount of capital. Having a solvency margin above zero means an insurer holds more than the minimum amount of capital. The following table shows a breakdown of MARAC Insurance Limited’s solvency margins as at 30 June 2019.

  Life (Statutory fund)
Audited 30 June 2019  
Actual Solvency Capital 3,287 2,265 5,552
Minimum Solvency Capital* 2,960 2,040 5,000
Solvency Margin 327 225 552
Solvency Ratio 111% 111% 111%

* An aggregate minimum of $5m applies to all companies writing life insurance.