Kenya Re's managing director Hillary Wachinga. [File]
Moody’s has affirmed Kenya Reinsurance Corporation Limited (Kenya Re) international and national scale financial strength ratings at B and AA+(KE) respectively, which carry a stable outlook for the business.
Kenya Re says the affirmation by Moody’s affiliate, GCR Ratings, reflects the reinsurer’s strengthened capital position, placed at Sh59.49 billion ($460.3 million), supported by sound earnings retention.
GCR Ratings further indicated that it expects Kenya Re's liquidity to remain within the same strong range over the near term, underpinned by consistent positive earnings generation and prudent liquidity management practices.
GCR Ratings is a pan-African credit rating agency, headquartered in Johannesburg, South Africa and an affiliate of Moody's, one of the world's leading providers of credit ratings, research and risk analysis.
GCR's financial strength ratings are a widely used reference point for insurers, reinsurers, brokers and regulators across Africa when assessing an institution's ability to meet its policyholder and treaty obligations.
The statement notes that for a reinsurer such as Kenya Re, an affirmed rating of this kind is a material signal to the broader market as it speaks directly to counterparty security, underpins the terms on which cedants and brokers are willing to place business and factors into the capacity and competitiveness of a reinsurer's participation in treaty programmes across the region and beyond.
Hillary Wachinga, Kenya Re's managing director and chief executive officer says this affirmation is an independent, external validation of what has always underpinned the organisation, citing a strong capital base, disciplined underwriting and consistent earnings.