Uganda Reinsurance Company

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Uganda Reinsurance Company Limited (2021-08)
  • Uganda Reinsurance Company
  • Year : Aug 2021
2 Tokens
USD 150.00
Summary

Uganda Re’s competitive position is neutral. This reflects the balance between the reinsurer’s preferred reinsurer status through 15% mandatory cessions on treaty business and significant onboarding of voluntary business, against relatively low premium scale compared to peer reinsurers. The reinsurer accounted for a market share of 17.4% (FY19: 16.5%) of aggregate primary market cessions with voluntary business (52% of gross premiums in FY20 vs. 43% in FY19) from cedants further building on secure flows from mandatory cessions. However, the premium base remained limited relative to similarly structured regional peers at a scale of c. USD17m.

Additional Information

The Stable Outlook is premised on the credit profile’s tolerance of risks arising from the operating environment, due to increasing Covid-19 risks. The GCR CAR of above 3x is viewed to absorb stressed scenario risks on aged receivables without diminishing our capitalisation assessment. While earnings are assessed at levels consistent with the rating, liquidity is susceptible to an increase in reinsurance receivables, a trend that could be prolonged by subsequent waves of Covid-19 infections. However, the rating can tolerate a slight moderation in liquidity.

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