Mayfair Insurance Company Limited

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Mayfair Insurance Company Limited (2021-09)
  • Mayfair Insurance Company Limited
  • Year : Sep 2021
3 Tokens
USD 300.00

Mayfair exhibits high levels of risk adjusted capitalisation. The entity sustained these levels of capital adequacy over the review period, driven by consistent internal capital generation and conservative dividend distributions. As such, the GCR Capital adequacy ratio (“GCR CAR”) registered at 2.4x (FY19: 2.3x) while the statutory CAR equated to 255% (FY19: 245%). Going forward, risk adjusted capitalisation is expected to remain above 2.3x, with expectations of the entity’s ability to absorb unfavourable risk deviations remaining at similar strengths.

Additional Information

The Stable Outlook reflects expectations that the credit profile of Mayfair will be maintained. In this respect, the GCR CAR is projected to register between 2.3x - 2.6x over the medium-term while the underwriting margin may measure above 11% over the corresponding period. Positive rating action may follow sustained improvements in liquidity or capitalisation above expectations (registering a liquidity coverage and GCR CAR of above 1.5x and 2.7x respectively, and a turnaround in underwriting performance at gross level resulting from a favourable claim experience, leading to a reduction in the high claim recoveries from reinsurance counterparties, as the investment income improvements exhibited are sustained.

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