Wellington: AM Best has withdrawn the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of 'a-' (Excellent) of Foundation Life (NZ) Limited (FLNZ) (New Zealand) as the company no longer has insurance policy liabilities. While the company remains a licensed insurance company, the Reserve Bank of New Zealand has granted FLNZ an exemption under section 60 (2A) of the Insurance (Prudential Supervision) Act 2010 from having to hold a current financial strength rating. At the time of the withdrawal, the outlook of these Credit Ratings (ratings) was stable.

According to BERNAMA News Agency, as of 1 September 2025, as part of the ongoing wind up of its insurance operations, FLNZ canceled all participating insurance policies with existing policyholders, offering them as a replacement one of the following: a cash payment option, a life insurance policy with Chubb Life Insurance New Zealand Limited (Chubb Life NZ) or a combination of both. FLNZ also transferred all unsettled claims and policies to Chubb Life NZ. FLNZ is expected to commence cash payments in early October 2025.