Heritage Insurance Company Tanzania Ltd

Image placeholder
The Heritage Insurance Company Tanzania Limited (2022-02)
  • Heritage Insurance Company Tanzania Ltd
  • Year : Feb 2022
3 Tokens
USD 300.00
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.

Related Publication

Tanzania Reinsurance Company Limited (2017-11)

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

The Heritage Insurance Company Tanzania Limited (2022-02)

Risk adjusted capitalisation is assessed at very strong levels, supported by a capital base that comfortably caters for insurance and market risk e...

Credit Spotlight: Additional Considerations for Rating Islamic Finance Institutions and Sukuk

GCR’s ratings on Islamic Finance institutions (IFI) and sukuk are not subject to distinct ratings criteria, despite very specific features. O...

Available Purchase Options: