A substantial capitalisation cash injection by shareholders into GENRIC Insurance Company confirms shareholder confidence in the business and endorses the strategy to focus on highly profitable niche insurance lines going forward.
GENRIC CEO, MC du Toit, says the company has enjoyed rapid growth over the past few years, which has driven a need for additional capital.
“The Board identified the need for capitalisation while expressing their commitment to and confidence in the business,” he says. “The shareholders endorsed this support by investing the capital required to take the company to the next level.”The capital injection releases the pressure that rapid growth has placed on the company’s capital adequacy requirement. The recent Global Credit Rating Company(GCR) report on GENRIC confirmed the company’s A- credit rating.
“The capital inflow, together with a review of our business model, will help to improve our GCR rating,” says Du Toit. “GENRIC has been a proud contributor to the South African short-term insurance industry since we were founded in 2005. We see this investment by our key shareholders as a vote of confidence in our strategy, team and the bright future that awaits.”
“Over the past year GENRIC has terminated certain loss-making portfolios in line with the hardening
of the insurance market. It is envisaged that this move will have an extremely positive effect on the
business overall. The company has also made the strategic decision to reduce its non-performing
commercial and personal lines exposures as a result of the continually hardening reinsurance market
and to focus on specific lines of business by partnering with niche players” says Du Toit.
Du Toit says GENRIC has always prided itself on its ability to innovate and adapt to trading conditions.
“We are confident that our decision to refine our approach will serve both our policyholders, insurance partners and stakeholders well into the future. Our niche short-term insurance lines are doing very well and we are on track not only to maintain our financially sound position, but to grow.
We are entering an exciting phase and are confident in a bright future with a substantially stronger
balance sheet,” concludes Du Toit.