Solvency & financial strength
Partners Group has a wide shareholder base, which includes a number of NZ and offshore institutions, management, and staff. We believe having employees as shareholders creates an energy and commitment that may otherwise be difficult to achieve.
In September 2016 the Group secured a $200m investment commitment from the Tactical Opportunities Fund managed by Blackstone. The New York-headquartered Blackstone is listed on the New York Stock Exchange and is one of the world’s largest asset managers with more than $500 billion (US$360 billion) in assets under management. Its substantial capital investment in Partners Life will give it a significant minority shareholding. The $200 million is all new capital, meaning existing shareholders will remain co-invested alongside Blackstone.
Reinsurance for Partners Life is predominantly provided by the SCOR Group. SCOR ranks as the 4th largest life reinsurer in the world with €8.2b gross written premium in 2016, has 30 offices worldwide, and is the leading life reinsurer in the USA. For SCOR’s current ratings see www.scor.com/en/group-ratings
Like all licensed insurers, Partners Life is required to meet a Solvency Standard which is determined by the Reserve Bank of New Zealand (RBNZ).
Partners Life continually meets solvency standards through a mixture of shareholder capital and reinsurance quota share arrangements, which not only reinsure a significant percentage of the claims risk, but also helps fund new business expenses.
As at 30 September 2018, Partners Life's Actual solvency capital was $397m, which represented a margin of $106.3m over the Minimum solvency capital requirement. This was made up of:
The Minimum solvency capital is the amount of capital required to be held according to the RBNZ Solvency standard.
The Solvency margin is the amount of capital held by Partners Life that is surplus to (i.e. over and above) the Minimum solvency capital.
As a licensed insurer, Partners Life is subject to the requirements of the Insurance (Prudential Supervision) Act 2010. The purposes of this Act are to:
(a) promote the maintenance of a sound and efficient insurance sector; and
(b) promote public confidence in the insurance sector.
In accordance with the requirements of the Act, Partners Life has established a Statutory fund. A statutory fund is a fund that:
(a) is established in the records of a life insurer; and
(b) relates solely to the life insurance business of the life insurer.
The assets of a statutory fund are ring-fenced from other business assets, to ensure they cannot be used for purposes other than the business of the statutory fund i.e. paying customers’ claims. The Act prescribes a number of other requirements in order to protect the interests of policy holders.
As of 22 March 2018 Partners Life’s financial strength rating was affirmed as 'Secure' B++ (Good) with Positive Outlook by A.M. Best, an approved RBNZ rating agency. This means that in A.M. Best’s opinion Partners Life has a good ability to meet its on-going insurance obligations. Positive Outlook indicates that Partners Life is experiencing favourable financial and market trends, relative to its current Best’s Credit Rating. If these trends continue, Partners Life has a good possibility of having its Best’s Credit Rating upgraded. For the latest rating or further details around the latest rating, please visit www.ambest.com.
The combination of strong reinsurance, committed shareholders and a secure credit rating, means you can be confident that Partners Life will be there when you need us to be.