GCR says the new rating implies the company has very high claims paying ability relative to other issuers in the same country.
It said the strengthening was underpinned by robust growth in the capital base which was at 23 per cent in 2016 compared to one per cent in 2015.
GCR noted that the adjusted international solvency margin had increased to 80 per cent in 2016 compared to 56 per cent the previous year, with risk-adjusted capitalisation further supported by a reduction in market and credit risk exposures.
South African-based GCR has upgraded Heritage Insurance’s rating with the underwriter’s outlook assigned as stable.
The upgrade for the year to June 2018 reflects a strengthening in risk adjusted capitalisation to a “very strong level” expected to be sustained, according to the agency.
“GCR has today upgraded the national scale claims paying ability rating assigned to the Heritage Insurance Company Kenya Ltd to AA-(KE) from A+(KE), with the outlook accorded as stable,” stated GCR.
GCR says the new rating implies the company has very high claims paying ability relative to other issuers in the same country.
It said the strengthening was underpinned by robust growth in the capital base which was at 23 per cent in 2016 compared to one per cent in 2015, facilitated by a reduction of the dividend pay-out ratio to 13 per cent in 2016, compared to 100 per cent previous year.
GCR noted that the adjusted international solvency margin had increased to 80 per cent in 2016 compared to 56 per cent the previous year, with risk-adjusted capitalisation further supported by a reduction in market and credit risk exposures.
“Capitalisation is expected to be sustained at very strong levels over the rating horizon, given the alignment of capital management and dividend policies with risk based capitalisation targets,” GCR said.
The rating firm said the underwriter displays a healthy business profile.
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