Booster Assurance Limited is licensed as an insurer issued by the Reserve Bank of New Zealand. Booster Assurance Limited is a wholly owned subsidiary of Booster Financial Services Limited.
Booster Assurance Limited, as a licensed insurer, doesn't need to have a current financial strength rating because its annual gross premium income for the financial year 1 July 2020 to 30 June 2021 is less than $1.5million, as calculated in accordance with the Insurance (Prudential Supervisions) Regulations 2010.
The benefit under the Super Simple life insurance policy is insured with Hannover Re. Hannover Re has a Standard & Poor's financial strength rating of AA-.
The accidental death benefit provided to Booster KiwiSaver Scheme members is not reinsured.
Booster Assurance Limited's ability to pay claims is related to the level of capital it holds, and the extent to which the insurance cover has been reinsured (which is a form of risk sharing with other insurance companies).
The Reserve Bank of New Zealand requires all insurance companies to hold solvency capital. The minimum level of solvency capital required is calculated based on the level of risk the insurance company faces.
The solvency capital for Booster Assurance Limited at 31 December 2020 was:
|Actual solvency capital||1,814|
|Minimum solvency capital||1,268|
Minimum solvency capital - this is the amount of capital required to be held according to the solvency standards issued by the Reserve Bank of New Zealand
Solvency margin - this is the amount of solvency capital that Booster Assurance Limited held over and above the minimum required by the solvency standards
Solvency ratio - this is the percentage of actual solvency capital relative to the minimum solvency capital