Uganda Reinsurance Company

Image placeholder
Uganda Reinsurance Company Limited (2021-08)
  • Uganda Reinsurance Company
  • Year : Aug 2021
3 Tokens
USD 300.00
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.

Related Publication

UAP Old Mutual Uganda Limited (2011-09)

A Credit Rating report is a research report providing detailed analysis utilised by GCR in the accordance of a Credit Rating.

Profit in the Policies: Ugandan Insurance Sector’s regulatory changes set to improve market fundamentals, spur consolidation and longer-term penetration

Uganda’s insurance sector is amongst the most profitable markets in the sub-Saharan Africa region, notwithstanding its relatively small size...

Nigeria’s Capital Markets: Robust Corporate Debt Issuance Expected Over 2021

GCR expects corporate debt issuance in Nigeria to remain robust throughout 2021. Debt capital market activity in Nigeria has increased significantl...

Available Purchase Options: