Sanlam CEO Mugo Kibati. FILE PHOTO | NMG
South African-based global credit ratings agency GCR has affirmed Sanlam Life Assurance Ltd
financial strength at AA-(KE) with a stable outlook.
“This
is supported by a strong competitive position, moderately strong
liquidity, and moderately strong capitalisation. The insurer’s
capitalisation is expected to improve over the medium term, in line with
the planned de-risking of the balance sheet,” it said.
The
report added that earnings capacity is viewed to be intermediate, with
the strategic shift towards individual life business likely to offset
cost efficiencies derived from the revised commission structure.
“As
such, earnings capacity is expected to remain at an intermediate level.
Sanlam Life Kenya’s stand-alone credit profile is viewed to be
supported by implied shareholder support,” the report added.
The rating is valid until June 2018. Sanlam Life Kenya is majority-owned by South African-based Sanlam Group.
In mid-July, Sanlam’s earlier rating scale was placed under review after expiry in June.
The last rating had been done in June 2016 placing the underwriter’s financial strength at AA-(KE) with a stable outlook.
The
‘AA-’ rating scale implies that it has very strong financial security
characteristics relative to other issuers or obligations in the same
country, differing only slightly from those rated higher.
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