Global Credit said the insurer had developed a stable franchise and solid market position in a highly competitive industry.
UAP’s liquidity level is moderately strong and is expected to remain at the same level, it said.
Global Credit Ratings (GCR) has highly rated UAP Insurance claims-paying ability on the back of strong competitive positioning supported by robust brand recognition.
The Johannesburg-based agency affirmed UAP’s national scale claims-paying ability rating at AA-(KE), awarding it a stable outlook.
Global Credit said the insurer had developed a stable franchise and solid market position in a highly competitive industry.
“We expect UAP Kenya’s competitive position to remain solid, supported by its position within a large and entrenched regional group, with potential enhancement stemming from increased involvement from Old Mutual Plc,” the agency said.
The insurer’s liquidity level is moderately strong and is expected to remain at the same level, it said.
The agency also viewed the underwriter’s risk-adjusted capitalisation as strong. It further said the UAP’s capital adequacy is expected to remain strong on the back of the large capital base.
The shareholder support after the UAP rebranded in 2016 boosted the insurer’s standalone credit profile.
UAP Insurance is the third largest underwriter with a share of 7.9 per cent of total short-term industry premiums as at 2017.
The insurer is a wholly-owned subsidiary of UAP Old Mutual, which is majority-owned by South African based Old Mutual Plc.
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