CiC Life Assurance Ltd

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CIC Life Assurance Limited (2021-09)
  • CiC Life Assurance Ltd
  • Year : Sep 2021
3 Tokens
USD 300.00
Summary

Over the past five years, the underwriter’s capacity to generate internal capital has been sluggish, considering weak earnings performance demonstrated over the same period. This was exacerbated by aggressive dividend distributions (required to repay debt at the highly leveraged holding company) barring FY20, with the capital base marginally growing by 2.2% on a compound annualised basis over the last five years. Exclusive of the review year, dividend distributions accounted for approximately 75% of prior four years after-tax profits, limiting internal capital generation.

Additional Information

The Negative Outlook captures potential rating pressure should the group’s credit profile continue to deteriorate beyond expectations.  Positive rating action may follow a sustained improvement in the credit profile of the group provided that CIC Life’s credit profile is maintained at current and/or enhanced levels.

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