Agency gives UAP positive ratings in UG and Kenya

UAP Old Mutual group chief executive officer Peter Mwangi. PHOTO | SALATON NJAU | NMG

By JAMES NGUNJIRI

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Summary

• The underwriters joined Mayfair, Jubilee and ICEA Lion Insurance on the list of well rated insurers.
• The two firms are largely owned by South African Old Mutual.
• The rating firm said UAP Kenya’s position is viewed to further augment its market presence.

Global Credit Rating (GCR) has affirmed the positive claims paying abilities of UAP Insurance Kenya and Uganda with an AA-(KE) and A+(UG) ratings respectively, and accorded them a stable outlook.

The underwriters joined Mayfair, Jubilee and ICEA Lion Insurance on the list of well rated insurers.

An AA- rating for UAP Kenya implies high claims paying ability. Risk was assessed as modest but may vary slightly over time due to economic and/ or underwriting conditions.

An A+ rating for UAP Uganda also implies good claims paying ability.

The two firms are largely owned by South African Old Mutual.

GCR said UAP Kenya’s stand-alone credit profile is viewed to benefit from implied shareholder support, following rebranding undertaken in 2016.

“The rating uplifting therefrom has served to offset the negative impact of a downward moderation in earnings capacity on the insurer’s financial profile,” said GCR.

“UAP Kenya reflects strong competitive positioning, supported by strong brand recognition and new product offerings. The insurer has developed a well-established franchise and solid market position (second largest in terms of industry gross premiums) in a highly competitive industry, cemented by its demonstrated ability to enhance its premium base at a consistently robust pace,” said GCR.

The rating firm said UAP Kenya’s position is viewed to further augment its market presence.