South African rating firm Global Credit Ratings (GCR) has given favourable rating to Kenya Reinsurance’s (Kenya Re) financial strength. GCR said Kenya Re reflected sound liquidity, solid business profile and risk-adjusted capitalisation. GCR added that given the persistence of claims pressures despite prudent underwriting policies, and likely pressure on investment income, the re-insurer’s earning potential will represent a key rating consideration over the medium term. The business profile of the re-insurer was unchanged within intermediate levels, characterised by a strong presence in Kenya diluted by limited competitiveness in foreign markets, said the rating agency. GCR noted that outside Kenya, the Kenya Re recorded limited activity in multiple markets, with higher earning risks endorsed along business growth in select markets, factors that moderated assessment by the rating firm.

Source: Standard Digital July 11, 2020 21:00 UTC