Liberty Life Assurance Managing Director Abel Munda. PHOTO | DIANA NGILA | NMG
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The firm said the rating is supported by “very strong” liquidity observed during review period as well as good cash-flow generation.
GCR in the rating covering up to June 2018 said Liberty Life has a strong claims paying ability.
It is majority-owned by South African based Liberty Holdings.
South Africa-based rating agency GCR on Tuesday affirmed the national scale financial strength rating of Liberty Life Assurance Kenya Limited of AA-(KE) and accorded the underwriter stable outlook.
GCR in the rating covering up to June 2018 said Liberty Life has a strong claims paying ability.
The firm said the rating is supported by “very strong” liquidity observed during review period as well as good cash-flow generation.
“The insurer’s earnings capacity is viewed to be sound, with the net margin averaging 11 per cent over the past four years buoyed by a comparatively low claims experience. The net margin equated to a more subdued five per cent in FY16, owing to a rise in the benefits ratio to 57 per cent (prior three year average: 52 per cent),” said GCR.
Liberty Life formerly CfC Life Assurance Ltd, is a 100 per cent owned subsidiary of Liberty Kenya Holdings Ltd listed at the Nairobi Securities Exchange.
It is majority-owned by South African based Liberty Holdings.
The agency said the insurer reflects a strong competitive position, underpinned by higher than industry average growth rates supported by a strong distribution channel network.
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