The MHM unconditional, irrevocable guarantee in favour of Grand Re’s policyholders results in MHM paying policyholder obligations owed by Grand Re to “its insurance counterparties, should the company be unable to pay upon a claim that has been assessed as due”. GCR reviewed the guarantee together with the legal opinion, as well as relevant board resolutions, and is satisfied that it meets the relevant conditions of unconditionality, irrevocability, timeliness and ranking in line with MHM’s own creditors.

The upgrade of Grand Re’s rating reflects a credit enhancement on the insurer’s stand-alone credit profile from the policyholder guarantee issued by the parent; Masawara Holdings Mauritius Limited (“MHM”, ‘guarantor’). As a result, the financial strength rating on Grand Re will solely reflect the creditworthiness of the guarantor going forward.