Global Credit Ratings (GCR) assigned an initial national scale claims paying ability rating to Lion of Africa Insurance of BBB(ZA), with the outlook accorded as stable. This was the first time in recent years that GCR has conducted a rating for LOA. 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. The progress made at LOA over the past 18 months is reflected in the credit agencies’ assessment of the company, 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.
S&P Global also revised their outlook to stable (from negative) and maintained the previous rating.
Yvonne Mujuru, sector head of insurance ratings at GCR 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 LOA. It is only with the high standards that we set for ourselves that we can accomplish such results,” says Bongani Madikiza, CEO of LOA in an internal publication to staff. “We also need to ensure that we remain focused on maintaining this momentum to grow LOA, specifically on growing our business at the required pace, managing our claims efficiently and managing costs effectively.”