Icon

Directory

IconAccounting & Tax
IconActuaries
IconAdministrators
IconAppraisers & Valuers
IconArbitration Services
IconASIB
IconAssessors & Loss Adjusters
IconAssist and Lifestyle Benefits
IconAssociations & Institutes
IconAuditors
IconBBBEE Consulting and Verification Agencies
IconBroker Acquisition Financing
IconBrokers for Brokers
IconBusiness Process Management
IconBusiness Process Outsourcing
IconCall Centre Outsourcing & Sales
IconCompany Secretarial Services
IconCompliance
IconConsumer Protection
IconCorporate Governance
IconCredit Bureaus
IconDebit Order Collection Facilities
IconDefensive Driver Training
IconEducation and Training
IconEmergency Medical Rescue
IconFAIS
IconFire, Storm, Flood Damage Specialists
IconHuman Resources
IconIndustrial Cleaners
IconInformation Technology and Software Partners
IconInsurance Companies
IconLegal
IconLightning Damage & Surge Protection Specialists
IconNiche Insurance Products
IconOmbud
IconOutbound Sales
IconOutsourcing Companies
IconPolicy Administration
IconPremium Financing
IconPublic Loss Adjustors
IconPublications
IconRating Agencies
IconReference Books & Material
IconRegulatory Authorities
IconRisk Finance
IconRisk Management
IconRisk Surveyors
IconSalvage Operators
IconSpecialized Claims Investigations & Assessing
IconSurveys and Research
IconTraining Courses & Workshops
IconUnderwriting Managers
IconVehicle Accident Management
IconVehicle and Household Risk Inspection Services
IconVehicle Tracking
IconWellness Programs
IconWholesale Brokers
IconZZZZZZ
Image
  Subscribe To »

GCR rates Lion of Africa Insurance as BBB(ZA), outlook Stable

Published

2017

Thu

18

May

 
Over the past few months Lion of Africa Insurance Company Limited (Lion) embarked on a journey to improve its credit rating. The substantial amount of time and effort that was devoted to ensure that the progress made at Lion over the past 18 months is reflected in the credit agencies’ assessment of the company.
 
On 3 May 2017, Global Credit Ratings (GCR) assigned an initial national scale claims paying ability rating to Lion of BBB(ZA), with the outlook accorded as Stable.
 
This was the first time in recent years that GCR has conducted a rating for Lion. Lion was advised by several stakeholders to utilise GCR, in order to give stakeholders a sense of Lion’s claims paying ability. The level of robustness of the questions posed, introspective engagement and the level of detail of the information required from them was much more than required previously.
 
On 17 May 2017 Standard & Poors (S&P) also revised their outlook to Stable (from Negative) and maintained the previous rating.
 
The rating and outlook issued by GCR is as a result of the strategic turnaround implemented during the previous 18 months, which includes the exiting of the corporate and personal lines businesses, effective implementation of the RAG (Risk Appetite Grid), as well as enhancing the underwriting skills and pricing capabilities. In addition, the focus on strengthening the balance sheet and resultant improvement in our solvency gives comfort that Lion cover its claims. Furthermore, the fact that our outlook has been revised by S&P proves that our strategy is yielding the desired results, that our company is well capitalised and that there is stability in the business.
 
GCR per Yvonne Mujuru, Sector Head of Insurance Ratings opined that “Capitalisation is expected to be sustained at strengthened levels over the outlook horizon, although it could be partially impacted by a shortfall in net performance relative to expectations. Capital adequacy is further supported by the strong reinsurance panel, with net deductibles limited to conservative levels against capital.”
 
“These positive results could not have been achieved without the hard work of employees, the support of brokers and clients. I wish to thank each and every one of you for your commitment to Lion. It is only with the high standards that we set for ourselves that we can accomplish such results,” says Bongani Madikiza, CEO of Lion of Africa Insurance Company Limited, in an internal publication to staff. “We also need to ensure that we remain focused on maintaining this momentum to grow Lion, specifically on growing our business at the required pace, managing our claims efficiently and managing costs effectively,” he added.
 
S&P is subsequently withdrawing the rating services at Lion’s request as it is not financially prudent to spend money on two rating agencies.
 
Source: Cambial Communications
 
« Back to previous page Print this page » |
 

Breaking News »

Cybersecurity insurance – the missing link in business financial wellness

Information infrastructure departments around the world jumped into action on Friday 12 May to protect their businesses against the latest cyberattack, WannaCry. According to media reports, this Trojan ransomware ...
Read More »

  

Digital transformation helping businesses to thrive

By John Tadman, Country Manager for Avanade South Africa   Digital transformation is no longer hype. Companies now realise that in order to keep up with their competitors, streamline their costs and ...
Read More »

  

FSB Appeal Board and powers of the Registrar to debar

The decision in the Hlumbane case by the Appeal Board of the FSB provides very interesting information about the Board’s powers in terms of decisions made by the Registrar of Financial Services Providers, ...
Read More »

  

The inadequacy of law in the digital age

By Jared Nickig, Director at Werksmans Attorneys   Technology is advancing much more quickly than most people anticipated even a decade ago. This begs the question as to whether or not our social, economic ...
Read More »

 

More News »

Image

Healthcare »

Image

Investment »

Image

Life »

Image

Retirement »

Image
Image
Image
Image
Image
Image
Image
Image
Image
Image
Image
Image

From The Glossary »

Icon

Automatic Coverage:

Subject to contractual terms, additional property or other risks are covered by an existing contract without specific request by the insured.
More Definitions »

 
 
By using this website you agree to the Terms of Use.
Copyright © Stoker Risk & ICT (Pty) Ltd 2004 - 2017.
All Rights Reserved.
Icon

Advertise

  Icon

eZine

  Icon

Contact IG

Icon

Media Pack

  Icon

RSS Feeds