Global Credit Rating (GCR) affirmed the national scale claims paying ability rating assigned the insurer at AA-(KE) with a stable outlook.
Heritage Insurance Company has been accorded top credit rating with a stable outlook by Johannesburg-based Global Credit Rating (GCR), on the back of a strong liquidity and earnings.
The agency affirmed the national scale claims paying ability rating assigned the insurer at AA-(KE) with a stable outlook.
The rating will be in place until June 2019.
GCR said the insurer’s liquidity is expected to remain within a strong range, supported by sound operating cash flow generation and balanced asset allocation.
The agency views the insurer’s earnings capacity as strong backed by healthy underwriting profitability and sound investment returns.
“The five-year underwriting margin is equated to eight per cent, while the investment yield is registered at 13 per cent,” said GCR in a rating notification.
Heritage Insurance managing director Godfrey Kioi said the insurer continues to build capital at a favourable rate with innovation being a key area of focus.
“Looking ahead, the management is putting in place strategies that should result in more sustainable future earnings,” said Mr Kioi.
The rating agency said the underwriter has displayed a healthy business profile, which is underpinned by moderate competitive positioning and fairly well diversified earnings.
According to GCR, the insurer’s market share has been maintained at approximately four per cent of short-term industry gross premiums over the last four years, hence overall product risk is viewed to be moderately limited.
Heritage Kenya recorded a pre-tax profit of Sh770.9 million in 2017, an increase of nine per cent from Sh705 million recorded in 2016.
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Note: The results are not exact but very close to the actual.
