The Heritage Insurance Company Tanzania Limited (2022-02)
- Heritage Insurance Company Tanzania Ltd
- Year : Feb 2022
Summary
Risk adjusted capitalisation is assessed at very strong levels, supported by a capital base that comfortably caters for insurance and market risk exposures. Note is taken that the insurer did not pay out dividends in the year under review, addressing the concern of continued capital reduction as a result of dividend extraction. As such, the capital base measured at TZS15.8bn at FY20 (FY19: TZS14.9bn; FY16: TZS17.6bn). leading tothe GCR capital adequacy ratio (“GCR CAR”) closing higher at 2.6x at FY20 (FY19: 2.3x). Heritage Tanzania’s regulatory solvency was maintained above the regulatory requirement over the review period.
Additional Information
The Stable Outlook reflects expectations of sustained financial profile strength, factoring in the likelihood of continued earnings suppression in the short term as a result of limited premium growth and elevated total costs. Capitalisation and liquidity metrics are expected to tolerate the level of earnings pressure anticipated over the next 12 months. Upward rating movement may follow a sustained improvement in earnings capacity and business profile while other credit protection metrics are maintained within strong ranges.
