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.

The Heritage Insurance Company Tanzania Limited’s (“Heritage Tanzania”) national scale financial strength rating reflects its strong financial profile, supported by very strong capitalisation and liquidity, as well as moderately strong earnings. These credit positives are, however, partially offset by a limited but recovering business profile. Risk adjusted capitalisation has been consistently maintained at very strong levels over the review period, underpinned by limited credit and market risk exposures.

The Heritage Insurance Company Tanzania’s national scale financial strength rating reflects a strong financial profile, which is complemented by implicit group support from its parent, The Heritage Insurance Company Kenya Limited. These positives are, however, partially offset by a limited business profile. Risk adjusted capitalisation registered at very strong levels, underpinned by a capital base that comfortably caters for the quantum of insurance and market risk exposures.