The national scale financial strength rating of Global Alliance Seguros, S.A. reflects its access to operational and technical support from the parent company, Absa Financial Services Africa Holdings Proprietary Limited and the wider Absa Group Limited. While GCR notes the insurer’s strong local market presence, coupled with a diversified product offering, these credit positives are, however, moderately diluted, given their limited contribution to earnings resilience. Furthermore, intermediate levels of capitalisation and liquidity are offset by a protracted weakness in earnings, with the insurer’s overall financial profile assessed to be credit neutral.
The analytical entity is GA Seguros, SA. The insurer was incorporated in 1993 and has established itself as one of the leading insurance companies operating in Mozambique. The company has a composite licence to transact both nonlife and life insurance. GA Seguros’ market position is viewed to be strong (despite moderating from the market leading position over the past few years), with relative market share registering around 2.2x.