Namibia National Reinsurance (NamibRe) on Friday received a positive rating from Global Credit Rating (GCR), a leading rating agency in Africa, despite a rather challenging economic environment experienced in the better part of this year.
GCR said NamibRe’s national scale financial strength rating upgrade reflects sustained improvement in earnings, together with maintenance of strong risk adjusted capitalization and liquidity.
“These credit strengths are partially diluted by a relatively limited business profile. The improvement in earnings was supported by a favourable claims experience, together with sound investment income,” GCR said.
The rating agency added that the three year aggregated underwriting margin equated to a higher 13 percent compared to the prior three-year cycle margin of 4 percent.
Going forward, GCR views the maintenance of a favourable claims pattern, coupled with consistent investment returns as key drivers for earnings to be sustained within a strong range.
GCR added that NamibRe’s domestic market position is viewed to be intermediate, further constrained by limited geographic diversification.
“NamibRe historically benefited from mandatory cessions which have been negatively impacted by temporary retraction of cessions,” said GCR.
Source: News Ghana