NAIROBI, Kenya August 17 The Capital Markets Authority (CMA) has reviewed the credit rating agencies guidelines, in a bid to enhance best practices on Kenya breaking news | Kenya news today |
Registered agencies have notched nearly 500 alleged rules violations since 2016, but compliance in recent years has improved, SEC says in annual report.
A.M. Best Rating Services has assigned a ‘bb+’ rating and stable outlook on Custodian and Allied Insurance Limited, after an independent analysis of its operations.
According to AM Best, “the stable outlook reflects AM Best’s view that the balance sheet strength is expected to remain underpinned by the strongest level of risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR).
“Over time, increasing capital requirements stemming from strong business growth are likely to be adequately supported by retained earnings, bolstered by the company’s robust underwriting profitability.”
With its strong liquidity, the rating agency pointed out that Custodian has moderate exposure to local equities and real estate, which account for approximately one-fifth of invested assets, even as it has high reliance on reinsurance, primarily for the oil and energy line of business.