Old Mutual Insurance Company (Private)Limited
- Old Mutual Insurance Company (Private) Limited
- Year : Nov 2020
Summary
Old Mutual Insurance Company (Private) Limited’s (“OMICO”) downgrade emanates from a weakening in the insurer’s financial profile due to significant losses on net monetary assets in a hyperinflationary environment. Resultantly, earnings capacity measured in a very weak range in inflation adjusted terms, while previously strong risk adjusted capitalisation and liquidity moderated to an intermediate range.
Additional Information
OMICO’s business profile is supported by a strong market position, partially offset by limited premium diversification. The insurer registered a strong competitive position, albeit with a sustained weakening in the market position over the past three years (note is taken of the insurer’s relatively higher retention to peers). OMICO’s competitive position is expected to be maintained at similar levels over the medium term as insurers adapt to strategies that preserve longer term underwriting capacity.
