ppendix 5 January 2015 Financial Strength Ratings - Insurance Companies Insurers Licensed Under the Insurance (Prudential Supervision) ct 2010 Key General Insurers Insurance Ltd +.M.est CE Insurance Ltd IG New Zealand Ltd ioi Nissay Dowa Insurance Company Ltd + llianz ustralia Insurance Limited MI Insurance Limited (formerly MI Insurance (Operations) Limited) tradius Credit Insurance NV erkshire Hathaway International Insurance Limited + - CL Insurance Ltd + FMG Insurance Ltd FM Insurance Ltd + IG New Zealand Ltd ( NZI, MI and State) Lloyds of London + + Lumley General Insurance (N.Z.) Ltd - Mitsui Sumitomo Insurance Company Ltd + + New Zealand Local Government Insurance Corporation Ltd (Civic ssurance) + Pacific International Insurance Ltd QE Insurance (International) Ltd (new Zealand ranch) + + Sunderland Marine Mutual Insurance Company Ltd + - - The New India ssurance Co Ltd - Tokio Marine & Nichido Fire Insurance Co. Ltd (NZ ranch) + Tower Insurance Limited - Vero Insurance New Zealand Ltd + Vero Liability Insurance Ltd + Zurich ustralian Insurance Limited trading as Zurich New Zealand + License Cancelled / In Run Off.M.est CS (NZ) Ltd (formerly nsvar Insurance) llianz New Zealand Ltd China Taiping Insurance (NZ) Co. Ltd + Equity General Insurance Company Ltd Ex Epi Limited
New Zealand ssociation of Credit Unions NLG Insurance Ltd Pinnacle Life Insurance Partnership RG Reinsurance Company South Pacific Warranty Services Limited Southern Response Earthquake Services Limited (formerly MI Insurance Limited) Swann Insurance (ust) Pty Ltd Tatua Insurance Ltd The Hibernian Catholic enefit Society TOWER Health & Life Limited - Reinsurers.M.est General Reinsurance ustralia Ltd + ++ General Reinsurance Life ustralia Ltd + ++ Great Lakes Reinsurance (UK) Plc + Hannover Life Re of ustralasia Ltd Munich Reinsurance Company + Munich Reinsurance Company of ustralasia RG Reinsurance Company of ustralia Ltd Swiss Re Life & Health ustralia Limited Special Purpose Insurers.M.est canthus Insurance Company Limited (PI Insurance for the Consulting Engineers dvancement Society) Not rated CS (NZ) Ltd (formerly nsvar Insurance) allance gri-nutrients Insurance Ltd eneficial Insurance Ltd (reakdown, Guarantee, Pets) + Carter Holt Harvey Insurance Ltd Coalcorp Insurance Services Ltd (Solid Energy) Consumer Insurance Services Ltd Credit Union Insurance Limited DPL Insurance Limited + Education enevolent Society Incorporated Farmers Mutual Group First merican Title Insurance Company of ustralia Pty Ltd Fonterra Insurance Ltd - Genworth Financial Mortgage Insurance Pty Ltd Gordian Runoff Limited Hallmark General Insurance Company Ltd +
Health Service Welfare Society Limited + Indemnity and General Insurance Company Limited Kiwi Insurance Ltd - Manchester Unity Friendly Society Marac Insurance Ltd - + Medical Insurance Society Ltd - Meridian Energy Captive Insurance Ltd New Zealand Dental Insurance Society Limited New Zealand Local Government Insurance Corporation Ltd + New Zealand Medical Professionals Limited Product Care (NZ) Limited Provident Insurance Corporation Limited (reakdown, credit and loan) QE Lenders' Mortgage Insurance Ltd Quest Insurance Group Ltd Ravensdown Fertiliser Insurance Co Ltd Selacs Insurance Ltd Sentinel ssurance Company Ltd Southbury Insurance Limited (In Liquidation) Teal Insurance Ltd (ir New Zealand) + Teleco Insurance (NZ) Ltd (Telecom NZ) Veterinary Professional Insurance Society Incorporated + Virginia Surety Company Inc (Telecom NZ) - TrustPower Insurance Ltd Unison Insurance Limited (Unison Power) Life / enefits Insurers.M.est I International Limited merican Income Life Insurance Company + MP Life Limited stero Life Ltd NZ Life Insurance Ltd Cigna Life Insurance NZ Ltd - Co-operative Life Ltd Fidelity Life ssurance Company Ltd - Greenwich Life Insurance Company Ltd Grosvenor ssurance Limited Hallmark Life Insurance Company Limited + Medical Life ssurance Society Ltd -
OnePath Insurance Services (NZ) Ltd OnePath Life (NZ) Ltd Pacific Life Limited Partners Life Limited Pinnacle Life Limited Police Health Plan Limited SCOR Global Life SE Southern Cross enefits Ltd + Southern Cross Medical Care Society + Southsure ssurance Ltd Sovereign ssurance Company Limited + The National Mutual Life ssociation of ustralasia Limited TOWER Life (N.Z.) Limited - TOWER Medical Insurance Limited - Union Medical enefits Society Ltd (UniMed) - Westpac Life NZ Ltd Rating Definitions The insurer financial strength rating table for Poor s is: CCC CC SD D R NR (Extremely Strong) (Very Strong) (Strong) (Good) (Marginal) (Weak) (Very Weak) (Extremely Weak) (Selective Default) (Default) (Regulatory Supervision) (Not Rated) The insurer financial strength rating table for M est is: Secure Vulnerable ++, + (Superior), - (Fair), - (Excellent) C++, C+ (Marginal), + (Good) C, C- (Weak) D (Poor) E (Under Regulatory Supervision) F (In Liquidation) S (Suspended) The insurer financial strength rating table for is: : Exceptionally strong
'' IFS Ratings denote the lowest expectation of ceased or interrupted payments. They are assigned only in the case of exceptionally strong capacity to meet policyholder and contract obligations. This capacity is highly unlikely to be adversely affected by foreseeable events. : Very strong '' IFS Ratings denote a very low expectation of ceased or interrupted payments. They indicate very strong capacity to meet policyholder and contract obligations. This capacity is not significantly vulnerable to foreseeable events. : Strong '' IFS Ratings denote a low expectation of ceased or interrupted payments. They indicate strong capacity to meet policyholder and contract obligations. This capacity may, nonetheless, be more vulnerable to changes in circumstances or in economic conditions than is the case for higher ratings. : Good '' IFS Ratings indicate that there is currently a low expectation of ceased or interrupted payments. The capacity to meet policyholder and contract obligations on a timely basis is considered adequate, but adverse changes in circumstances and economic conditions are more likely to impact this capacity. : Moderately weak '' IFS Ratings indicate that there is an elevated vulnerability to ceased or interrupted payments, particularly as the result of adverse economic or market changes over time. However, business or financial alternatives may be available to allow for policyholder and contract obligations to be met in a timely manner. : Weak '' IFS Ratings indicate two possible conditions. If obligations are still being met on a timely basis, there is significant risk that ceased or interrupted payments could occur in the future, but a limited margin of safety remains. Capacity for continued timely payments is contingent upon a sustained, favourable business and economic environment, and favourable market conditions. lternatively, a '' IFS Rating is assigned to obligations that have experienced ceased or interrupted payments, but with the potential for extremely high recoveries. Such obligations would possess a recovery assessment of 'RR1' (Outstanding). CCC: Very weak 'CCC' IFS Ratings indicate two possible conditions. If obligations are still being met on a timely basis, there is a real possibility that ceased or interrupted payments could occur in the future. Capacity for continued timely payments is solely reliant upon a sustained, favourable business and economic environment, and favourable market conditions. lternatively, a 'CCC' IFS Rating is assigned to obligations that have experienced ceased or interrupted payments, and with the potential for average to superior recoveries. Such obligations would possess a recovery assessment of 'RR2' (Superior), 'RR3' (Good), and 'RR4' (verage). CC: Extremely weak 'CC' IFS Ratings indicate two possible conditions. If obligations are still being met on a timely basis, it is probable that ceased or interrupted payments will occur in the future. lternatively, a 'CC' IFS Rating is assigned to obligations that have experienced ceased or interrupted payments, with the potential for average to below-average recoveries. Such obligations would possess a recovery assessment of 'RR4' (verage) or 'RR5' (elow verage). C: Distressed 'C' IFS Ratings indicate two possible conditions. If obligations are still being met on a timely basis, ceased or interrupted payments are imminent. lternatively, a 'C' IFS Rating is assigned to obligations that have experienced ceased or interrupted payments, and with the potential for below average to poor recoveries. Such obligations would possess a recovery assessment of 'RR5' (elow verage) or 'RR6' (Poor). Notes: "+" or "-" may be appended to a rating to indicate the relative position of a credit within the rating category. Such suffixes are not added to ratings in the '' category or to ratings below the '' category.