By Our Reporters
Global Credit Ratings Company, a South Africa-based leading analysis and ratings organization, has affirmed the national scale claims paying ability rating assigned to UAP Old Mutual Insurance Uganda Limited of A+ (UG), with the outlook accorded as Stable. This rating will be valid until June 2019. Upon receiving the certification, David Kuria the managing director of UAP Old Mutual Insurance expressed great honor and thankfulness to the staff for the effort put not only in their day to day tasks but also towards compliance and adherence to the strategic plan. “This will give our customers and key stakeholders re-assurance about the organization’s technical and financial ability to settle claims and fulfill other financial obligations,” David Kuria said. He added that the rating will also act as a motivational force for the organization to continuously innovate unique tailor made value propositions complemented with exceptional service delivery.
According to the findings by GCR, UAP Old Mutual Insurance’s earnings capacity was viewed to have significantly improved in FY17/18. This was largely an outcome of key earnings drivers evidencing stability within a viable range. Cost reduction initiatives, combined with value driven scale enhancement, generated a year on year underwriting profit movement of Shs3.5bn in FY17. With all other variables held constant, the ratings report added that the observance of a cautious underwriting strategy, complemented by credit discipline (primed by regulatory directives), has potential to feed into a material strengthening in risk adjusted capitalization over the medium term. On top of that, UAP Old Mutual Insurance’s solvency protection from reinsurance is viewed to be sound with 2018 deductibles limited to levels which are viewed to be conservative relative to capital while the reinsurance panel reflected moderately strong aggregate counterparty strength. UAP Old Mutual Insurance Uganda reflects a very strong competitive position representing a key rating strength. In this respect, being the second largest player in the short term insurance industry. This has been underpinned by strong recognition of the UAP Old Mutual brand in East Africa and reinforced by the group’s international franchise. Further supported by a well-established distribution network, UAP Old Mutual Insurance exhibits unique capabilities to execute prudent underwriting strategies while retaining a robust market position.
