Mutual & Federal gets AAA financial strength rating from Fitch

23 July 2014 Mutual & Federal

International rating agency, Fitch, awarded short-term insurer, Mutual & Federal, an Insurer Financial Strength rating of AAA (ZAF) last week. The agency said Mutual & Federal maintains strong liquidity and solvency, underpinning its ability to fulfil its obligations to policyholders resulting in superior security for customers and intermediaries.

For companies in the short-term insurance space, the key measure for success and sustainability is the ability to pay claims promptly and fairly. The ratings announcement reinforces the point that Mutual & Federal meets its value proposition to its clients; to pay valid claims promptly, turning setbacks into comebacks.

According to Jaco van der Sandt, Mutual & Federal Finance Director, the rating recognises Mutual & Federal’s solid position as the second largest short-term insurer and its strong value proposition in the markets it serves.

He added: “The rating confirmed Mutual & Federal as core to the Old Mutual group which further adds to the strength of the Mutual & Federal brand proposition.”

Fitch cited Mutual & Federal’s conservative investment strategy and well-established business position as key drivers of their decision to award the rating. Mutual & Federal is currently trading with an active Global Credit rating of AA+.

“We are very pleased with the outcome of this rating and we look forward to continue to deliver real value to all our stakeholders including policyholders, intermediaries, employees and shareholders,” Jaco concluded. 

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