Compass Insurance Company Limited

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Compass Insurance Company Limited
  • Compass Insurance Company Limited
  • Year : May 2021
3 Tokens
USD 300.00

Compass Insure’s strong liquidity remained a key rating strength in the face of COVID-19 pandemic pressures. The factor’s assessment is supported by strong cash generation from operations, competitive operating cost management, as well as a good claims experience. In this regard, liquidity metrics remained resilient as evidenced by stressed financial asset coverage of net technical liabilities of 7.0x (FY19: 8.3x) and operational cash coverage of 30 months at FY20 (FY19: 54 months). Going forward, there is likelihood of a slight moderation in liquidity metrics from lower investment income, albeit with overall liquidity expected to register within a strong range.

Additional Information

Compass Insure’s business profile is viewed limited, reflecting low gross premium market share, a limited net revenue base and high product concentration to the property line of business. However, strong growth in ancillary lines of business recorded over the review period, together with the launch of new technology driven products positively impacted Compass Insure’s competitive position. Furthermore, the insurer’s competitive position is viewed in light of the large portion of captive revenue, as well as the well-diversified spread of risk premiums across UMAs.

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