WINDHOEK – Namibia National Reinsurance Corporation Limited (NamibRe)’s national scale financial strength rating was upgraded by GCR Ratings on 18 December, 2019, to AA-(NA), from A+(NA), with the outlook accorded as stable. GCR also revised the international scale financial strength (formerly claims paying ability) rating assigned to NamibRe to B+/Stable from BB. According to NamibRe this is a huge achievement for both the corporation and its shareholders as the global industry trend saw most reinsurance companies’ ratings downgraded during 2019.
NamibRe’s national scale financial strength rating upgrade is a reflection of sustained improvement in earnings coupled with remarkable maintenance of strong risk adjusted capitalisation and liquidity. The corporation’s improved earnings is supported by favourable claims experience backed up by sound invesment income.
The other apsect of the corporation’s operations that contributed to the positive rating is the risk adjusted capitalisation, which the rating agency viewed to be strong with a large capital base and the ability to cater for the quatum of insurance and market exposure.
“This upgrade not only speaks to our ability to pay claims as a corporation, but also speaks to our business accumen as a profit-making organisation that has mananged to improve and deliver positive results albeit the legal disputes and harsh ecomonical landscapes in which we have been operating in the past two to three years,” said NamibRe Managing Director Patty Karuaihe-Martin.
True to the rating agency’s findings of a good liquidity standing underpinned by a healthy internal cash flow for the financial year ended 31 March 2019, NamibRe declared a divident of N$10 million to the government as a shareholder.
GCR Ratings was established in 1996 as the African branch of the New York Stock Exchange-listed Duff & Phelps. The agency has grown rapidly since its establishment and has since positioned and cemented itself as the leading rating agency in Africa, accounting for the majority of all ratings accorded on the African continent.
GCR has presence in Mauritius, South Africa, Nigeria, Kenya and Zimbabwe. In South Africa, GCR is registered as a Credit Rating Services Provider by the Financial Services Conduct Authority.
GCR is also recognised as an eligible External Credit Assessment Institution (ECAI) by the South African Reserve Bank. GCR is a founder member of Europe-based ARC Ratings, which is registered with the European Securities and Markets Authority.