Mutual & Federal retains AA+ Credit Rating

Mutual & Federal has maintained its domestic ZAR currency financial strength rating of AA+ (double AA plus) accorded by Global Credit Rating Co. This measurement rates the claims-paying ability of the group and is based on several key factors identified by Global Credit Rating Co. – including the strength of the Mutual & Federal brand, the insurer’s position as the second largest short-term insurer in SA (15% market share), its stable premium income, entrenched position in the broker market and well-established distribution channels.

Mutual & Federal CEO Keith Kennedy (pictured) said that the rating confirmation was most pleasing, considering the global economic and financial markets turmoil. “The rating acknowledges our concerted efforts to effectively manage our solvency and liquidity levels during these extremely difficult times. It also points to our currently reduced exposure to the volatile equity markets. With this rating, our corporate and personal clients are assured of the strong and continued ability of Mutual & Federal to pay their claims.”

With uncertain global economic conditions expected to continue throughout 2009, affecting all companies and industries, Global Credit Rating Co. has indicated that the financial strength rating for Mutual & Federal has been placed on rating watch. The insurer’s December 2008 year end results are expected to be announced on 6 February.