Global Credit Ratings (GCR), a Johannesburg based agency has affirmed the national scale claims paying ability rating assigned to Kenya Re with the outlook accorded as Stable.
The announcement that took place on the 18th of September 2018, furthermore affirms the international scale claims paying ability rating assigned to Kenya Reinsurance Corporation at BB, with the outlook accorded as stable with the validity period ending in July 2019.
Global Credit Ratings (GCR) has attributed the credit ratings to Kenya Reinsurance Corporation based on the strengthening of asset liability management approaches in recent years and a sizeable investment portfolio supports very strong liquidity metrics, which are likely to be sustained over the medium term.
“Kenya Re’s rating is supported by capital buffers, which have cushioned risk-adjusted capitalization metrics within a very strong range over the review period. Accordingly, the international solvency margin equated to a very high 196% at FY17 (FY16: 192%), comfortably tolerating dividend distributions and developing credit pressures.” Stated the Global Credit Ratings Agency.
Kenya Reinsurance Corporation Managing Director, Mr. Jadiah Mwarania spoke on the credit rating at his office in Reinsurance Plaza. “This announcement is truly a tremendous achievement by Kenya Re. We are very happy that the Global Credit Ratings Agency has accorded us a stable rating. We aim to continue working hard as a Corporation so as to secure an even better GCR rating come 2019.”
Kenya Re has a strong profile in Kenya that has helped the reinsurer achieve an 18% domestic market share thus solidifying the corporation a favourable strategic position. The corporation has a positive affiliation with the Kenyan government and has spread earnings across different locations and lines of business that it operates in.
The reinsurer’s subsidiaries in strategic locations and expansion into the Southern and West African regions has also cemented the Corporation in the global reinsurance sector. The Corporation’s business profile is projected to remain strong by the Global Credit Ratings Agency as a result of the above.