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Phoenix of Tanzania Assurance Company Limited
Phoenix of Tanzania Assurance Company Limited (2021-12)
Risk adjusted capitalisation measured at very strong levels, reinforced by sustained internal capital generation and full profit retention. In this respect, the entity’s capital base increased from TZS42.0bn at FY19 to TZS45.5bn at FY20. This served to offset the entity’s increased aggregate risk exposure, sustaining the GCR Capital Adequacy Ratio (“GCR CAR”) above 4.0x. Furthermore, capital concentration to investment property reduced to 37.3% at FY20 (FY19: 40.4%) due to the aforesaid growth in internally generated capital. From a statutory solvency standpoint, minimum regulatory requirements were met, with the statutory CAR registering at 2.0x at FY20.
The Stable Outlook reflects our expectation that the entity’s and MUA Kenya’s current credit profiles are maintained at current levels, supported by sustained financial profile. Positive rating action could result from a significant improvement in MUA Kenya’s credit profile, while the entity’s credit protection metrics are sustained at similar levels.