Summary
- Global Credit Ratings (GCR) has affirmed Kenya Reinsurance Corporation (Kenya Re) a national scale financial rating of AA+ with a stable outlook, citing strong capital base and healthy liquidity.
- The South African rating agency said the reinsurer has demonstrated a strong financial profile both in Kenya and the international markets it serves.
- Kenya RE last year booked a net profit of Sh3.97 billion up from Sh2.29 billion posted the previous year, translating to a growth of 73 percent on the back of properties revaluation.
Global Credit Ratings (GCR) has affirmed Kenya Reinsurance
Corporation (Kenya Re) a national scale financial rating of AA+ with a
stable outlook, citing strong capital base and healthy liquidity.
The
South African rating agency said the reinsurer has demonstrated a
strong financial profile both in Kenya and the international markets it
serves.
Kenya RE last year booked a net profit of
Sh3.97 billion up from Sh2.29 billion posted the previous year,
translating to a growth of 73 percent on the back of properties
revaluation.
“The entity demonstrated a strong
financial profile, while business profile remained at intermediate
levels, with small and risky presences in foreign markets diluting
entrenched strong domestic market position,” said GCR.
GCR,
however, downgraded Kenya Re’s international scale financial strength
rating to B, from B+ on Kenya’s risks revisions. It, however, retained
the table outlook too.
The agency said the international scale financial strength
rating was lowered to reflect higher operating risk in jurisdictions
where gross premiums are derived.
Notably, Kenya and
India accounted for 75 per cent of gross premiums in the financial year
ended 2019, up from 70 per cent in the previous year.
Unrealised
property revaluation gains saw Kenya Re’s capital grow by 13 per cent
to Sh33.65 billion last year from Sh29.4 billion.
GCR
said the capital adequacy ratio was maintained at about three times the
minimum, reflecting a sizeable capital base relative to the growing
quantum of the insurance market and credit risks.
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