Credit Insurance Zimbabwe Limited (2022-03)
- Credit Insurance Zimbabwe Limited
- Year : Mar 2022
Summary
Credsure is a small player in the domestic market, with the traditional focus on credit business having been expanded into a combination of generalised and specialist UMAs during the FY19 restructuring. In this regard, the underwriter’s risk spectrum is limited relative to other domestic insurers. Credsure accounted for 1.1% of the market’s gross premiums and was almost half the size of an average underwriter in FY20, with gross premiums of c.USD1.2m (FY19: c.USD0.9m; FY18: USD3.2m). Furthermore, more than 70% of gross premiums are ceded, significantly constraining the risk base.
Additional Information
The Evolving Outlook reflects uncertainty over the direction of liquidity metrics due to instability in investment portfolio composition and growth, amidst a hyperinflationary environment, as well as little predictability of real gross premium growth trends over the medium term. The rating could be upgraded if earnings and liquidity improve on a sustainable basis. Conversely, a further reduction in liquidity metrics below expectations could result in a rating downgrade.
