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GCR has reaffirmed Guardrisk Life Limited’s (“Guardrisk Life”) domestic ZAR currency financial strength rating of AA- (double A minus). Guardrisk Life’s business model is primarily aimed at cell captive insurance. In this respect, the cell captive acts as a single legal entity, comprised of a number of individual/standalone cells operating independently from one another, under a single insurance licence.
Regent retains AA- rating
GCR has reaffirmed Regent Insurance Company Limited’s (“Regent”) domestic ZAR currency claims paying ability rating of AA- (double A minus). Regent was established in 1989, and is a wholly owned subsidiary of Imperial Holdings Limited (“Imperial”), a diversified multinational mobility-focused group that had a market capitalisation of R17.7bn as at December 2009.
GCR downgrades Law Union Rock
GCR has downgraded Law Union Rock Insurance Plc’s (“Law Union”) domestic Naira currency claims paying ability rating to BBB+ (triple B plus) from A- (single A minus). Law Union is a mid-tier market participant accounting for approximately 2.7% of industry non-life gross premiums in F08. The company exhibits a well established brand in the Nigerian insurance industry. The insurer’s business model is geared towards large corporate property and motor fleet accounts, with the two classes accounting for a combined 63% of total GPI in F08.
FBC Re rating affirmed at single A minus
FBC Reinsurance Limited’s (“FBC Re”) domestic Z$ currency claims paying ability rating was affirmed at A- (single A minus). The rating measures FBC Re’s ability to meet claims in Zimbabwe and is a reflection of its established position in the domestic reinsurance market. The rating is further supported by an explicit guarantee provided by its parent company FBC Holdings Limited, which guarantees the payment of all claims in the event of FBC Re not being able to meet its obligations arising out of reinsurance agreements.
GCR reaffirms Netcare SA’s rating at A-
GCR has reaffirmed Netcare South Africa’s (“Netcare SA”) domestic ZAR currency long term rating at A- (single A minus) and short term rating at A1- (single A one minus). For the Netcare Group, F09 represented a year of consolidation, where efforts were directed towards overcoming the challenges that had arisen in previous years. These included the successful implementation of a new pricing structure, the opening of two private public partnership hospitals and the finalisation of the Ampath sale.
East African Cables maintains rating
Notwithstanding the challenging operating environment, East African Cables Limited (“EAC”) maintained its domestic KShs currency ratings of A- (single A minus) and A2 (single A two) for the long and short terms respectively.
Kakawa Discount House Limited
GCR has removed Kakawa Discount House Limited from positive rating outlook and retained the company’s domestic Naira currency ratings of A (single A) and A1 (single A one) in the long and short term respectively. Kakawa commenced operations as a mono-product business, trading in short term government securities. However, as a result of the release of revised guidelines for Discount Houses by the Central Bank of Nigeria (“CBN”) in 2008 (which inter alia broadened the functions of discount houses and removed the ownership restriction), Kakawa has expanded into a number of related fields aimed at both the corporate sector and private investors.
First City Monument Bank Plc
GCR has downgraded First City Monument Bank Plc’s (“FCMB”) domestic Naira currency ratings to A- (single A minus) and A1- (single A one minus) in the long and short term respectively. Licensed in 1983, FCMB became a fully-fledged commercial bank in 2001. During the 2005 industry wide consolidation, the bank merged with Cooperative Development Bank Plc, Nigerian-American Bank Limited and acquired MIDAS Bank Limited, to become a mid-tier bank by capital, asset size and branch network. Its major shareholders are Stanbic Nominees Nigeria Limited and Capital IRG Trustees, holding 9.2% and 7.4% respectively. |
