Société Nationale d’Assurances et de Réassurances (2021-12)
- Societe Nationale d'Assurances et de Reassurances (SONAR-IARD)
- Year : Dec 2021
Summary
Liquidity remains a key rating weakness, limited by a relatively aggressive investment allocation stance. Further considering increases in net technical liabilities outpacing investment portfolio growth, cash and stressed financial assets coverage of net technical liabilities continued trending around 1.0x, while operational cash coverage equated to 34 months (FY19: 33 months; FY18: 39 months). As such, going forward, the entity’s liquidity could remain within the current range, despite management plans to maintain good earnings and reduce exposure to listed equities.
Additional Information
The Stable Outlook captures the expectation that developing earnings and business profile strengths could continue to compensate for limitations on liquidity and risk adjusted capitalisation over the rating outlook. Sustained improvement in earnings reflecting favourably on liquidity and risk adjusted capitalisation could be positively viewed. On the contrary, a weakening in risk adjusted capitalisation or in competitive position beyond expectations may result in negative rating action.
