Custodian & Allied Insurance rated high by GCR

Updated: Tuesday 03-11-2009

The management of Custodian & Allied Insurance has disclosed that the company had been rated A+ by Global Credit Rating Company ( GCR) of South Africa.

This, according to a statement, comes as a result of the company’s commitment and consistency in sustaining its ‘A’ rating by GCR in the area of claims payments and high liquidity level in the last two years.

It stated that the A+ rating is an indication that Custodian is strategically poised to maintain the trend in the sector and be more internationally relevant.

The company’s solvency has remained above 200 per cent over the past three years increasing to 282 per cent in 2008 financial year following a successful raising of additional capital of N4 billion in March, 2008, the rating report noted.

Furthermore, Custodian is rated as meeting its obligations as at when due because of its high solvency and has indeed had high claims cash coverage ratio of 108 months in the 2008 financial year.

Finally, the GCR rating noted that Custodian has a sizeable investment portfolio which ensured strong investment income for the insurer and which in 2008 financial year more than covered operating expenses.

GCR's rating approach employs analytical techniques that incorporate quantitative and qualitative factors. The rating reflects an evaluation of the company's current financial position, as well as how the financial position may change in the future. GCR examines the ability of the insurer to meet its obligations under reasonable and stressful scenarios.

Custodian & Allied Insurance, having been encouraged by this A+ Rating Global Credit Rating Co., is now poised to do more by raising the standards even higher.