Home Finance Guarantors Africa (Reinsurance) Limited
Year : Mar 2021
Home Finance Guarantors Africa (Reinsurance) Limited’s (“HFGA Re”) rating balances very strong capitalisation and liquidity with limited premium scale and diversification. Furthermore, the globally focused investment strategy is viewed to partly offset concentration of operations towards higher risk countries. HFGA Re’s risk adjusted capitalisation is very strong, with the GCR capital adequacy ratio (“CAR”) registering at a high and stable 4x at FY19, and estimated to have increased at 9M F20, supported by a conservative asset allocation strategy.
GCR expects cross cycle earnings to remain exposed to a level of volatility. However, we expect risk adjusted capitalisation and liquidity to remain very strong, supported by limited investment market and underwriting risk. GCR views the reinsurer’s low premium scale and product concentration to limit potential for upward rating movement.