Global Credit Rating (GCR) has revised Zimnat General Insurance’s national scale financial strength (insurance rating) rating to A+(zw) Stable Outlook, from its previous rating of A-(zw). The financial strength rating (formerly claims paying ability) went up two notches.
GCR is the leading emerging market focused ratings agency, rating the full spectrum of security classes based on the best international standards. It accords both International Scale and National Scale ratings. Together with its international affiliates, it rates almost 3 000 organisations and debt issues spanning four continents.
The rationale for Zimnat General Insurance’s new rating
Explaining the rationale for Zimnat General Insurance’s new rating, GCR said the insurance company’s national scale financial strength rating “reflects support from a sound business profile and a disciplined approach to underwriting and capital management”.
“Offsetting these strengths is liquidity moderation on the back of value preserving strategies, reflecting uncertainties presented by the operating environment.
“The insurer has maintained strong brand recognition and evidenced healthy growth momentum over the review period, with a significant increase in market share in the 2018 financial year, underpinned by comparatively high risk uptake in key lines of business,” GCR said.
Zimnat General Insurance chief executive officer Stanley Mazorodze said the rating should see clients enjoying enhanced security, innovative insurance products and continued timely claim payments.
“More operational flexibility comes with such a good rating, positioning the company to be a strong short-term insurer of choice.
“The company will boost its capacity to exercise its philosophy of providing the market with realistic insurance cover products that help clients achieve their set objectives and make their lives better,” he said.
‘To sustain this record A+ rating, Zimnat General Insurance will continue to be creative in developing practical risk solutions for the market and inventive in delivering products best suited to its clients’ needs. We have every intention of making the lives of all our stakeholders better,” he added.
Zimnat General Insurance is a part of the Zimnat group, a diversified financial services group made up of Zimnat General Insurance, Zimnat Life Assurance, Zimnat Microfinance and Zimnat Asset Management. Zimnat is a partner of Sanlam, the largest non-banking financial services group on the continent.