CBZ Life Limited

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CBZ Life Limited (2021-12)
  • CBZ Life Limited
  • Year : Dec 2021
3 Tokens
USD 300.00
Summary

CBZ Life has registered a protracted contraction in premiums over the past three years with the market share registering at 1.5% in FY20 (FY19: 2.3%; FY18: 2.9%) and the premium base amounting to c. USD1.7m (FY19: USD2.4m; FY18: USD10m). The contraction in GWP emanated from erosion of value on the USD sums assured following the introduction of the local currency in 2019 which was accompanied by hyperinflation. Furthermore, the business mix reflects limited diversification, with concentration to the funeral product, coupled with a lack of geographical diversification.

Additional Information

The Negative Outlook captures the expectation that earnings pressure is likely to persist, resulting in downside risk to risk adjusted capitalisation and liquidity. The business profile is expected to remain limited over the outlook horizon. Reversion to a Stable Outlook may follow a sustainable turnaround in earnings while liquidity and risk adjusted capitalisation remain within a strong range. Furthermore, the ability of the insurer to recover and maintain its market position could be positively viewed.

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