Global Credit Rating (GCR) affirmed Old Mutual Short-Term Insurance (Botswana)’s national scale rating of AA-, with a Stable outlook. The credit rating is on the basis of the business’s financial strength underpinned by adequate capitalisation, growing earnings, adequate funding, and liquidity of the business. This reflects the business’s overall credit worthiness and resilient balance sheet.
Despite the local competitive landscape, GCR’’s stable outlook reflects Old Mutual Short-Term’s efforts to improve its competitive position and grow it’s gross premiums despite market rigidities. In this respect, Old mutual Short-Term is expected to maintain growth in the medium term. Its competitive position is strong, supported by Its Pan African brand which operates in 14 countries across two regions: Africa and Asia (China).
Old Mutual’s Group says its presence in Botswana is well positioned to take advantage of the positive growth as it looks to expand its broker led business to include the leading players under the refreshed broker proposition, while ramping up the roll out of agency and bancassurance relationships, together with a potential first-to-market direct channel. This is being augmented by inroads into specialty products including agriculture and credit, through utilising expertise within the group.
GCR, is a leading rating agency which has established itself in Africa, accounting for the majority of all ratings accorded on the African continent. Through its local presence in Mauritius, South Africa, Nigeria, Kenya, Senegal, and Zimbabwe, GCR has the largest rating team in Africa which gives it unmatched on-the-ground presence.
