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Peter Kenneth's’ Mayfair Insurance credit rating up on diverse earnings

Peter Kenneth.
Peter Kenneth. Mayfair is associated with the politician. FILE PHOTO | NMG  

Mayfair Insurance has received an upgrade on its credit rating from Johannesburg-based Global Credit Ratings (GCR).

GCR has said the firm, associated with 2017 Nairobi governorship candidate Peter Kenneth, exhibits a moderately strong business profile supported by well diversified earnings stream, which is partially offset by a comparatively limited competitive positioning.

GCR has upgraded the national scale claims paying ability rating of the insurer to A(KE) from A-(KE) besides according it a stable outlook. The rating expires in June 2019.

“The upgrade reflects Mayfair’s earnings capacity remaining at strengthened levels, coupled with the maintenance of strong protection metrics,” the agency said.

It said the insurer sustained good earnings capacity with the three year underwriting margin of 18 per cent up from 17 per cent in 2017. Investment returns averaged eight per cent over the last three years.

“The insurer’s demonstrated track record of underwriting profitability is indicative of earnings capacity going forward,” said GCR.

It assessed the liquidity as strong, reflecting the exposure of sound to moderately strong banking counterparties.

GCR expects liquidity metrics to remain within a similar range over the outlook horizon, underpinned by sound cash flow generation and developing prudency in asset allocation.

Mayfair has registered very strong risk-adjusted capital adequacy in the period, supported by strict credit management policies and significant capital growth catering for the quantum of the insurance risk.