Mayfair Insurance, a company associated with Nairobi gubernatorial candidate Peter Kenneth, has been accorded a positive outlook by South African Global Credit Rating (GCR) firm.
The positive grade is based on prudent risk management and strong margins. The insurer’s claims payment has been rated A-(KE), a grade valid until June 2018.
The rating comes as a related firm is in the process of getting a banking licence.
GCR has in the last few months accorded Kenyan insurers a string of negative ratings.
The latest is negative outlook for listed CIC Insurance Group and deteriorated ratings for Moroccan-owned insurer Saham, Fidelity Shield Insurance and Canon Assurance.
“The Positive outlook reflects the potential for upward rating movement over the rating horizon, should strengthened earnings capacity be sustained,” GCR said.
The insurer’s three-year average underwriting margin stands at 18 per cent, while the operating margin averaged 36 per cent.
GCR said this has been a function of prudent underwriting and risk selection yielding low portfolio loss ratio, coupled with consistent commission relief from the low-retained fire industrial line.
“In GCR’s view, earnings capacity may be maintained at or above a strong range over the rating horizon, supported by stable earnings drivers,” the agency said.