Mutual & Federal maintains Global Credit Ratings AA+ score for ability to pay claims
04 December 2013 | Company News & Results | Old Mutual Insure (was Mutual & Federal) | Karen Miller, Mutual & Federal
South Africa’s second largest short-term insurer lauded for “very high claims paying ability” and gets accorded Stable outlook by leading rating agency.
Mutual & Federal, South Africa’s second largest short-term insurer has maintained its AA+ rating by Global Credit Ratings(GCR) in terms of its national scale claims paying ability.
Mutual & Federal was also accorded a Stable outlook in line with some of the qualifying criteria for the AA+ rating.
According to Global Credit Ratings, the AA+ rating points to a "very high claims paying ability relative to other issuers or obligations in the same country”.
In their assessment, Global Credit Ratings stated that the AA+ rating mirrors the Mutual & Federal competitive position as one of the leading insurers in the market and reflects the company’s ability to sustain this position going forward - supported by its substantial underwriting capacity and wide distribution network. The Mutual & Federal rating profile further benefited from the support and credit strength derived from its 100% ownership by Old Mutual Plc.
Karen Miller, Mutual & Federal Executive for Corporate & Niche insurance, commented that the company was proud of the rating as it reflected well on the company’s stature and reputation as the go-to insurer in South Africa and other African regions where they have a presence.
"This rating is very encouraging as it demonstrates the strength of the business with respect to our substantial underwriting capacity, wide distribution network, our capital management strategy and our ability to support our plans to expand our African operations,” Miller said.
"Going forward, we will continue to build on our solid base and focus on doing the basics right to drive profitable financial growth and put us on a good path to achieve our plans to build Mutual & Federal into Africa’s best short-term insurer," Miller concluded.
About GCR
GCR rates the full spectrum of security classes and accords both International Scale and National Scale ratings, and together with its international affiliates, rates almost 3000 organisations and debt issues - spanning 4 continents.
