Global Credit Ratings Company (SA) has affirmed the national scale claims paying ability rating assigned to the Heritage Insurance Company Kenya Limited of A+(KE); with the outlook accorded as positive. The rating is valid until June 2016.
The rating company highlights that the insurer’s performance is supported by its position as an established top tier player in the domestic insurance market, underpinned by its direct affiliation with the Liberty Group, which provides operational support on an on-going basis.
In addition, Heritage’s entrenched presence in the domestic market in addition to contributing to this performance has also endeared them to high caliber counterparties on the reinsurance program. The insurer also boasts of a sizeable investment portfolio which features more than 170% of shareholder’s funds, as well as internal measures that have ensured the company has continued to operate within tactics that reduce exposure to pertinent market risks.
Another attribute to the company’s performance in claims settlement is the current product diversification strategy that enlists four classes of distinct product ranges with each contributing in excess of 10% of the net premium base.
The continued upward movement of the rating is expected to be influenced further by the expected increase in market penetration and uptake of products in the local industry, sustained earnings capacity and the attainment of appropriate measures of solvency and liquidity metrics in line with market expectations, trends and developments.
“Claims settlement is an integral part of an insurance company’s operations and constitutes the key performance indicator we as insurance providers are judged by,” Heritage Insurance Managing Director Godfrey Kioi. “However extensive the range of products and scope of cover an insurer may grant, they would count for nothing if claims are not settled promptly, efficiently and effectively’.”
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