Global Credit Ratings (GCR) has accorded Liberty Life Assurance a stable outlook after its national-scale financial strength rating was affirmed at AA-(KE) on the back of strong risk-adjusted capitalisation.
The Johannesburg-based agency noted the insurer’s capital and statutory reserves growth averaged 18 per cent over the last five years while underwriting market and credit risk exposures have been well controlled.
The rating is valid until June next year.
“Liberty Life Kenya’s earnings capacity has been supported at a sound level, with the five-year average operating margin exceeding that of peers at 12 per cent, albeit exhibiting a certain degree of volatility,” said the GCR.
The underwriter is a subsidiary of the Nairobi Securities Exchange-listed Liberty Kenya Holdings.
Its competitive position, according to the GCR, remained within a strong range, with the market share at 5.4 per cent in 2017 down from 5.9 per cent in 2016 though.
This was on the back of protracted reduction in individual life and deposit administration products.
The GCR said subsequently, the insurer’s management restructured the product portfolio to enhance the appeal of the deposit administration book while expecting to recoup further volumes from new endowment and unit-linked products.