ACC's "Superior" financial strength rating
ACC's "Superior" financial strength rating reaffirmed
The Accident Compensation Corporation's financial management has again been endorsed by leading rating agency AM Best which has affirmed it A+ (Superior) financial strength rating.
"In most cases, average levy rates have been held or reduced in the last couple of years, but ACC has maintained its financial position with the help of strong investment performances," chief executive Garry Wilson said.
ACC has an investment fund of $3.75 billion which is expected to grow to more than $7 billion as it fully-funds its liabilities.
"Last year it returned 3.8 percent on its investments, a year when many fund managers were producing negative returns," Mr Wilson said.
AM Best endorsed ACC's progress in building reserves that would eventually match its unfunded liabilities.
(The unfunded liabilities relate to long-term claims predating the transition from a pay-as-you-go to a fully-funded scheme in July 1999.)
Best recognised that ACC is meeting its targets that will
see it become fully-funded by June 30, 2014," Mr Wilson