Bryte Insurance Company Limited

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Bryte Insurance Company Limited (2022-03)
  • Bryte Insurance Company Limited
  • Year : Mar 2022
3 Tokens
USD 300.00

Weak earnings caused risk adjusted capitalisation to reduce in line with expectations, with Solvency Capital Requirement (“SCR”) coverage dropping to the lower end of the targeted band, equating to 1.2x at FY20 (FY19: 1.4x). However, improved earnings supported a recovery in SCR cover, and we expect a further incremental increase over the next six months on the back of positive net earnings and reduced reinsurance counterparty risk charges associated with COVID-19 related reserving. SCR coverage is therefore likely to increase and be maintained at around 1.4x over the next 12 to 18 months

Additional Information

GCR expects net earnings to continue to register at improved levels, supporting SCR coverage within the mid to upper end of the target range and liquidity coverage above 1.5x. The business profile is expected to remain credit negative, although the assessment could improve over the longer term on the back of continued strong growth and a sustained track record of more competitive earnings.  Upward rating movement could follow over the longer term if a positive underwriting performance track record can be demonstrated, supporting a strengthening in risk adjusted capitalisation and liquidity.

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