Legal information

We are required by law to make specific information available to customers and potential customers. This page brings these important legal disclosures together in one place for your ease of access.

Financial strength
Solvency margin
Additional financial information
Qualifying financial entity (QFE) disclosure statement
Privacy statement and cookies policy
Other legal information


Financial strength

Southern Cross Medical Care Society (trading as Southern Cross Health Society) has an A+ (Strong) financial strength rating given by Standard & Poor’s (Australia) Pty Limited.

The rating scale is:

AAA (Extremely Strong) AA (Very Strong) A (Strong)
BBB (Good) BB (Marginal) B (Weak)
CCC (Very Weak) CC (Extremely Weak) SD or D (Selective Default or Default)
R (Regulatory Action) NR (Not Rated)
Ratings from ‘AA’ to ‘CCC’ may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories. Full details of the rating scale are available at www.standardandpoors.com. Standard & Poor’s is an approved rating agency under the Insurance (Prudential Supervision) Act 2010.

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Solvency margin

The Society is a registered friendly society. As a consequence of its legal structure the Society has no recourse to external capital and therefore internally generated capital is of paramount importance. The Society’s capital of $435.5 million (30 June 2015: $400.1 million) represents the retained surpluses of the Society. Capital of the Group of $435.2 million (30 June 2015: $400.1 million) includes the reserves of the Society's non-insurance subsidiaries.

As a consequence of being a fully licensed insurer, the Solvency Standard for Non-life Insurance Business ("the Solvency Standard") issued by the Reserve Bank of New Zealand (‘RBNZ’) requires the Society to retain a positive solvency margin, meaning that the actual solvency capital position exceeds the minimum required under the Solvency Standard.

The Directors’ policy for managing capital is to have a strong capital base to establish security for members and enable the Society to conduct its business whilst maintaining financial soundness. The Society has embedded in its capital management framework the necessary tests to ensure continuous and full compliance with the Solvency Standard. The key internal benchmark is to maintain the solvency margin at between 35% and 45% of annualised premium income. At 30 June 2016 this margin was 37.8% of annualised premium income. The policy in respect of capital management is regularly reviewed by the Directors in line with the guidelines issued by the RBNZ.

During the current financial year the Society complied with all externally imposed capital requirements.

 

2016

2015

 

$m

$m

Solvency capital

413.3

381.0

Minimum solvency capital

73.2

76.6

Solvency margin

340.1

304.4

 

 

 

 

2016

2015

Solvency ratio (Solvency capital divided by

minimum solvency capital)

5.65

4.97

 

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Additional financial information

Our financial position is disclosed in our annual report and financial statements, along with the independent auditor and appointed actuary’s reports. Click here for the latest Southern Cross annual report.

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Qualifying financial entity (QFE) disclosure statement

The information provided in this disclosure statement is important

Southern Cross Medical Care Society (trading as Southern Cross Health Society) is a "Qualifying Financial Entity" (QFE). We are responsible for ensuring that our QFE advisers exercise due care, diligence and skill when providing financial advice on insurance and related products and services. We are licensed and regulated by the Financial Markets Authority for that financial advice.

You can check our QFE status on the register.

For information on financial advisers, or to report information about us or our advisers, you can contact the Financial Markets Authority on 0800 434 567 or at PO Box 1179, Wellington 6140.

The information provided in this disclosure statement is important and should help you decide which financial adviser to choose.

Providing financial advice

Our QFE advisers can provide personalised advice about our insurance and related products. However, our advisers do not have access to, or assess in detail, your particular financial situation or goals. Any financial advice provided by our advisers will be based primarily on their knowledge of those insurance and related products and services. However, when providing financial advice, we may take into account any relevant financial information you give us.

Complaints process

If you have a complaint about us you can contact us on 0800 800 181, at Member Services, Southern Cross Medical Care Society, Private Bag 99934, Newmarket, Auckland 1149 or email info@southerncross.co.nz. We will investigate and reply to your complaint as soon as we can. If you are unhappy with the response from Member Services, write to our Chief Operating Officer at the address above detailing the reasons you remain unhappy.

We are also a member of the Insurance and Financial Services Ombudsman’s approved dispute resolution scheme. You can contact the Insurance and Financial Services Ombudsman on 0800 888 202, at PO Box 10 845, Wellington 6143, or email info@ifso.nz.

This QFE disclosure statement was prepared on 1 June 2011.

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Privacy statement and cookies policy

Privacy of information relating to our members is governed by the Privacy Act and (in relation to health information) by the Health Information Privacy Code. Click here for our full privacy statement.

Cookies are used on the Southern Cross web site in a range of ways to improve your user experience. Click here for our Cookies policy.

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Other legal information

Southern Cross Medical Care Society (trading as Southern Cross Health Society) is a friendly society operated for the benefit of members since 1961. We are registered under the Friendly Societies and Credit Unions Act 1982.

Registered office: Level 1, Ernst & Young Building, 2 Takutai Square, Auckland 1010.
Postal address: Private Bag 99934, Newmarket, Auckland 1149
Phone: 0800 800 181
Email: info@southerncross.co.nz

 

We are a part of the Southern Cross Healthcare Group, which includes separate and independent hospital and travel insurance businesses.
Find out more about the Group and its structure here.

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