Auditor-General Edward Ouko in an audit report of the re-insurer for its 2017 full-year accounts raised doubts on the re-insurer’s revenue recognition format. FILE PHOTO | NMG
A rating review or watch signals change of grade. It gives a stronger indication on future rate changes than credit outlooks.
In February American rating agency A.M. Best downgraded the financial strength rating of Kenya Re to B (Fair) from B+ (Good). The long-term issuer rating was cut to bb+ from bbb-.
The insurance-focused ratings agency, however, revised the outlook of Kenya Re’s credit ratings (ratings) to stable from negative.
Johannesburg agency GCR has placed placed Kenya Reinsurance Corporation’s #ticker:KNRE national scale claims paying ability rating of AA(KE) and international scale claims paying ability rating of BB “under review”.
“While the ratings are expiring today (last week), GCR is currently engaging with the rated entity and expects to update the current ratings and publicly release them by the end of September 2018,” said the GCR on August 1 without divulging additional information.
A rating review or watch signals change of grade. It gives a stronger indication on future rate changes than credit outlooks.
In February American rating agency A.M. Best downgraded the financial strength rating of Kenya Re to B (Fair) from B+ (Good). The long-term issuer rating was cut to bb+ from bbb-.
The insurance-focused ratings agency, however, revised the outlook of Kenya Re’s credit ratings (ratings) to stable from negative.
“The rating actions are the result of A.M. Best’s concerns over the effectiveness of Kenya Re’s enterprise risk management in the face of expected business growth and increasingly sophisticated competition,” explained AM Best in an assessment issued in February.
“There are uncertainties related to the company’s ability to grow its capital resources at the same rate that it increases its revenue over the longer term.”
Auditor-General Edward Ouko in an audit report of the re-insurer for its 2017 full-year accounts raised doubts on the re-insurer’s revenue recognition format.
“The group has estimated unearned premium reserves at 40 per cent of the written premiums to defer premium income written but not earned during the reporting period,” he pointed out.
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