Leading Kenyan insurance company Heritage Insurance has been rated highly following an upgrade in rating on claims paying ability by South African based Global Credit Ratings (GCR), positioning the business as stable. GCR noted in its rating notification that the upgrade to AA- from A+ reflects a strengthening in risk adjusted capitalisation to a very strong level, noting that the insurance company has very high paying ability relative to other insurers in Kenya.
Heritage Insurance Managing Director Godfrey Kioi says the new rating asserts the company's position in the market as a reliable insurance partner.
GCR notes that the new rating which runs up to June 2018 is expected to be sustained going forward underpinned by robust growth in the capital base with capitalisation expected to be sustained at very strong levels over the rating horizon, given the alignment of capital management and dividend policies with risk based capitalisation targets.
It further expects earnings capacity to be maintained within a strong range, supported by robust underwriting systems and processes noting that,
The report further notes,
to which Kioi attributes prudent reserves allocation practice in the company.