FANews
FANews
RELATED CATEGORIES

Shareholders investment confirms confidence in Genric Insurance Company

26 June 2018 GENRIC

A substantial capitalisation cash injection by shareholders into GENRIC Insurance Company confirms shareholder confidence in the business and endorses the strategy to focus on highly profitable niche insurance lines going forward.

GENRIC CEO, MC du Toit, says the company has enjoyed rapid growth over the past few years, which has driven a need for additional capital.

“The Board identified the need for capitalisation while expressing their commitment to and confidence in the business,” he says. “The shareholders endorsed this support by investing the capital required to take the company to the next level.”

The capital injection releases the pressure that rapid growth has placed on the company’s capital adequacy requirement. The recent Global Credit Rating Company (GCR) report on GENRIC confimed the company’s A- credit rating.

“The capital inflow, together with a review of our business model, will help to improve our GCR rating,” says Du Toit. “GENRIC has been a proud contributor to the South African short-term insurance industry since we were founded in 2005. We see this investment by our key shareholders as a vote of confidence in our strategy, team and the bright future that awaits.”

“Over the past year GENRIC has terminated certain loss-making portfolios in line with the hardening of the insurance market. It is envisaged that this move will have an extremely positive effect on the business overall. The company has also made the strategic decision to reduce its non-performing commercial and personal lines exposures as a result of the continually hardening reinsurance market and to focus on specific lines of business by partnering with niche players” says Du Toit.

Du Toit says GENRIC has always prided itself on its ability to innovate and adapt to trading conditions.

“We are confident that our decision to refine our approach will serve both our policyholders, insurance partners and stakeholders well into the future. Our niche short-term insurance lines are doing very well and we are on track not only to maintain our financially sound position, but to grow. We are entering an exciting phase and are confident in a bright future with a substantially stronger balance sheet,” concludes Du Toit.

 

Quick Polls

QUESTION

In its current format, what will the future of medical schemes be in an industry run by the NHI?

ANSWER

I just can’t see it (NHI) happening
There is a real risk of our already fragile healthcare system being placed under even further pressure leading to a total collapse
Medical schemes will struggle to remain in existence if NHI does happen; there isn’t enough money in the system
A E fanews magazine
FAnews August 2019 Get the latest issue of FAnews

This month's headlines

Create designer policies through AI
Are advisers in a precarious position?
A claim, COIDA and a dog bite
Non-disclosure never an innocent fraud
Prescribed assets: The threat to pensions
Cannabis and the issue of trust
Getting the most from disability claims
Subscribe now