Our statutory fund

When you purchase an insurance policy from Pinnacle Life, all payments that we receive from you, or pay to you in relation to that policy will be transacted through our 'Rimu Statutory Fund'. The purpose of the statutory fund is to protect your interests by ring-fencing the assets of the fund from other business assets. The assets of the statutory fund cannot be used for purposes other than insurance business of the insurer e.g. paying insurance claims.

Our solvency margin

Under the Insurance (Prudential Supervision) Act 2010, Pinnacle Life is required to meet certain solvency standards, the table below shows the capital that Pinnacle Life holds. The “Adjusted Prescribed Capital Requirement” is the amount of capital the RBNZ requires us to hold under the RBNZ Solvency Standard. The Solvency Margin is anything above that amount.

At 31 December 2024 Pinnacle Life's Solvency Margin is $8.243m. This is made up as follows:

	Total ($m)	Rimu Statutory Fund ($m)	Shareholder Fund ($m)
Actual Solvency Capital	74.584	74.351	0.233
Adjusted Prescribed Capital requirement	66.341	66.339	0.002
Adjusted Solvency Margin	8.243	8.012	0.231
Adjusted Solvency Ratio	112.4%	112.1%	11650%

Our rating

A.M Best rates Pinnacle Life Limited 'B+' financial strength (Good) and a bbb- issuer credit rating (outlook 'stable') at 1 May 2024. The financial strength rating scale used by A.M. Best is:

A++, A+ (Superior);
A, A- (Excellent);
B++, B+ (Good);
B, B- (Fair);
C++, C+ (Marginal);
C, C- (Weak);
D (Poor);
E (Under Regulatory Supervision);
F (In Liquidation);
S (Suspended).