The Accident Compensation Corporation (ACC) has revealed a $3.4 billion deficit in its annual financial report but says it won't hit customers in the pocket.
The state-owned accident insurance provider says falling interest rates and the impact on global financial markets in the wake of Brexit are to blame.
The result compares with a budgeted surplus of $129 million and comes despite another strong result from its investments which earned 10.22 percent during the year.
It's also against a backdrop of a record volume of claims in the 2015/2016 year - 1.93 million - that's nearly one in three Kiwis a day making a claim.
Chief executive Scott Pickering says the scheme is in strong financial shape.
He says despite the deficit, ACC is still pushing ahead with plans to reduce levies for employers and motorists.
He says there's a proposed slight increase in levies for the earners account.