Falling interest rates push ACC deficit to $5.95 billion

Wed, 02 Dec 2020

Accident Compensation Corp reported a net deficit of $5.95 billion for the year ended June, largely because the impact of falling interest rates on its future liabilities was too much for another strong investment performance to overcome.The net deficit this year compares with last year's $8.66 billion net deficit, which was also due to falling interest rates.ACC's outstanding claims liability jumped to $61 billion at June 30 from $53 billion a year earlier and from $30 billion in June 2015. The accident insurer's outstanding c...

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