Star Assurance Company Limited

Image placeholder
Star Assurance Company Limited (2021-12)
  • Star Assurance Company Limited
  • Year : Dec 2021
3 Tokens
USD 300.00

Relative to historical levels, liquidity metrics maintained a downward trend at FY20, a result of increased exposure to investment property in FY19 (44% of total investments). As such, stressed financial assets coverage of net technical liabilities measured at 1.7x (FY19: 1.7x; FY18: 2.6x) while operational cash coverage registered at 8 months (FY19: 7 months; FY18: 22 months). Management is in the process of selling part of the investment property, however in our view, downside risks to asset disposal is viewed to be high given the current economic situation.

Additional Information

Risk adjusted capitalisation and liquidity are expected to remain at similar levels over the outlook horizon. In this regard, the GCR CAR is likely to register between 1.7x and 2.0x while liquidity ratio could remain above 1.5x. Underwriting profitability is expected to remain in the negative territory due to high operating costs while investment income suppression may be sustained, reflecting a reduction in earning assets.Upward rating action may stem from an improvement in the asset quality leading to a strengthening risk adjusted capitalisation, liquidity and bottom-line earnings.

Related Publication

Enterprise Insurance Company Limited (2018-10)

A Credit Rating report is a research report providing detailed analysis utilised by GCR in the accordance of a Credit Rating.

Ghana Insurance Statistical Bulletin 2013

This is the seventh Ghana Short Term Insurance Industry Brief from Global Credit Rating Co. (“GCR”), covering the Ghanaian short term i...

GCR Risk Score Snapshot as of Dec 31st 2019

If you are interested in the underlying scores, ratings or a more detailed score breakdown for any of the issuers mentioned, or the methodologies t...

Available Purchase Options: