Telesure Investment Holdings (Pty) Limited

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Telesure Investment Holdings (Pty) Limited (2022-03)
  • Telesure Investment Holdings (Pty) Limited
  • Year : Mar 2022
3 Tokens
USD 300.00
Summary

Liquidity remains very strong, positively influencing the ratings despite the observance of a significant increase in net technical provisions, surpassing growth in invested assets in FY21. In this respect, the group’s cash coverage of net technical liabilities moderated to 2.5x (FY20: 3.0x), reflecting liquidity absorption due to rising claims pressure. Nevertheless, coverage of operational expenses remained relatively unchanged, equating to 7.1 months (FY20: 7.5 months). Looking ahead, sustained claims pressure without corresponding growth in funded assets may see a further moderation in liquidity coverage.

Additional Information

The Stable Outlook reflects expectations of sustained financial profile strength, with the group’s SCR cover expected to register above 1.35x, while stressed investments coverage of technical liabilities may continue to measure around 2x. The ratings could be upgraded following a sustained and material strengthening in competitive position and/or earnings. Conversely, negative rating action may follow should earnings weaken below expectations, especially if this continues to adversely impact liquidity.

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