This archive report was first published on 20 November 2019.
On November 20, 2019, Global Credit Ratings (GCR) announced an upgrade to the credit rating of Kenya Reinsurance Corporation (Kenya Re), reflecting the company's strong financial performance.
The upgrade, which was made under the new criteria released in May 2019, saw Kenya Re's Financial strength ratings revised from AA to AA+.
Additionally, GCR revised Kenya Re's international strength ratings to a rating of B+ in 2019, up from a rating of BB in 2018. The agency attributed this positive change to the company's strong risk-adjusted capitalization and its ability to adequately cater for the relatively stable quantum of the insurance market and credit risk.
Kenya Re's strong liquidity was also cited as a key factor in the upgrade, with liquid assets making up 53% of the total investment portfolio. Furthermore, the agency noted that the liquidity coverage of net technical liabilities and operational cash coverage remained fairly stable during the last three years.
As the oldest reinsurer in East and Central Africa, Kenya Re has been in operation since 1970.
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