Old Mutual ST Insurance (Botswana) Limited

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Old Mutual Short-Term Insurance (Botswana) Limited (2021-11)
  • Old Mutual ST Insurance (Botswana) Limited
  • Year : Nov 2021
3 Tokens
USD 300.00

Risk adjusted capitalisation is strong underpinned by low market risk and somewhat manageable credit risk exposures relative to the capital base. Consistent internal capital generation buoyed the capital base to BWP113.9m (FY19: BWP101.2m), after a conservative dividend distribution of BWP5m (3.5x dividend cover). This catered well for underwriting risk exposures (the major contributor to solvency capital requirements), with the GCR Capital Adequacy Ratio (“CAR”) measuring above a resilient 3x.

Additional Information

The Stable Outlook reflects our view that the insurer’s efforts to improve competitive position are balanced by those of close competitors and relative growth in gross premiums will be gradual, given market rigidities. In this respect, penetration of new intermediated spaces and direct channel initiatives are expected to gather critical mass over the medium term, if well executed. Risk adjusted capitalisation reflects sufficient buffers to retain a strong assessment, while liquidity metrics are likely to remain with the current range.

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