Emeritus Reinsurance (Private) Limited (Feb 2024)

Emeritus Reinsurance (Private) Limited (Emeritus Re Zimbabwe) is a wholly owned subsidiary and an essential part of Zimre Holdings Limited (ZHL or the group), contributing 49% of the group's gross premiums in 2022 (2021: 38%). Emeritus Re Zimbabwe however consolidates the performance of its regional reinsurance subsidiaries in Zambia, Mozambique, Malawi, and Botswana, with the consolidated entity (the sub-group) constituting 77% of ZHL's gross written premiums (2021: 74%). The reinsurance business cluster nevertheless accounts for only 26% (2021: 24%) of the group's total assets due to the significance of the property business.
ZHL is a diversified group listed on the Zimbabwe Stock Exchange with interests in general, health and life insurance, reinsurance, reinsurance brokerage, and property investments. Major shareholders in ZHL at 31 December 2022 include Day River Corporation (33.8%), the Government of Zimbabwe (18.2%) and the National Pension Scheme (15.2%), with the remaining stake spread among several institutional and individual investors. In 2023, the Government of Zimbabwe acquired a majority stake in Day River Corporation, effectively becoming the majority shareholder in ZHL.
Considering the subgroup’s core status within the ZHL structure, the rating of Emeritus Re Zimbabwe was derived from an analysis of the strengths and weaknesses of group.

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ZEP-RE (PTA Reinsurance Company) (Feb 2024)

ZEP-RE (PTA Reinsurance Company), (Zep Re), is a pan-African reinsurer that was created through the 1990 agreement of Heads of States and the government of COMESA countries in Mbabane, Swaziland (now Eswatini). The reinsurer’s mandate includes promoting trade, development, and integration within the Common Market for Eastern and Southern Africa (COMESA) region through trade of insurance and reinsurance business. The company commenced operations in 1993 and is headquartered in Kenya. The reinsurer also has two other regional hubs in Harare (Zimbabwe) and Abidjan (Cote D’Ivoire), as well as country offices in Lusaka (Zambia), Addis Ababa (Ethiopia), Kampala (Uganda), Kinshasa (DRC) and Kigali (Rwanda). The company initially had Takaful reinsurance operations domiciled in the Khartoum (Sudan) office but suspended its operations indefinitely mainly due to ongoing civil conflict as well as political and economic uncertainties in the region.

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NSIA Insurance Company Limited (Feb 2024)

NSIA Insurance Company Limited (NSIA Insurance) is a licensed short-term insurance company established in 2010 following an acquisition of more than 80% in CDH Insurance by Groupe NSIA (‘NSIA Participations’ or ‘the group’). NSIA Participations is a large regional group, which has brand presence in thirteen West and Central African countries predominantly through majority direct or indirect shareholdings in co-branded subsidiaries and associates. The group is headquartered in Ivory Coast and focuses mainly on the insurance, banking and other finance sectors. Following a rights issue that was successfully concluded towards the end of 2021 (valued at about USD3m), the group retained its controlling stake in NSIA Insurance with a shareholding of c. 97%.
NSI Insurance is small in the context of the broader group, representing about 1% of consolidated revenue. As a result, we conduct the analysis on a standalone basis and applied a level of group support.

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AIICO Insurance Plc (Feb 2024)

AIICO Insurance Plc (AIICO insurance or the group) commenced operations in Nigeria in 1963 as an agency of American Life Insurance Company ("ALICO") - a subsidiary of American International Group (AIG) at that time. The group was incorporated, registered, and licensed in Nigeria as American Life Insurance Company Limited, a wholly owned subsidiary of ALICO/AIG in 1970 to offer Life, pension products and insurance services. It was later renamed American International Insurance Company Limited (AIICO) upon the acquisition of a 60% stake by the Federal Government of Nigeria, and later listed on the Nigerian Stock Exchange in 1990.
Following the consolidation of the insurance industry in 2007, the group acquired NFI Insurance Plc and Lamda Insurance Company Limited (both cumulatively accounting for less than 30% of AIICO's pre-acquisition gross premiums). AIICO insurance had three subsidiaries: AIICO Pension Managers Limited (APML), AIICO Capital Limited (asset management) and Multishield Limited (a healthcare maintenance organization). In 2021, the Group disposed of 33.9% of APML out of its 70.2% holdings, effectively losing control and converting the former subsidiary to an associate company. During the year 2022, AIICO insurance fully disposed APML and acquired an annuity book from Tangerine Life Insurance Limited (Tangerine Life), in line with its strategy to become a market leader in the annuity business. In this respect, the analytical approach applied is a group credit analysis, factoring in AIICO Insurance and its two remaining subsidiaries.
As at 30 September 2023, AIICO insurance’s major shareholders were LeapFrog III Nigeria Insurance Holdings Limited (30.5%), DF Holdings Limited, and AIICO Bahamas Limited (41.3%), with combined stakes of 72%. The remaining 28.2% equity stake is mainly freely floated to diverse retail and institutional investors on the Nigerian Exchange Limited.

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Tangerine General Insurance Limited (Jan 2024)

Despite reporting 24% growth in GWP in 2022, the insurer’s high operating costs relative to premiums received, and high commission payments due to its broker reliance have constrained overall earnings. This is in line with historical trend, although with relatively low net claims experience. Gross claim remained relatively stable at NGN2.2 billion in 2022, with no major losses except offsetting movement across the line of business.

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Western National Insurance Company Limited (Jan 2024)

Western National Insurance Company Limited (Western National SA) is 60% owned by Western National Insurance Company Ltd Namibia, which in turn is owned by Western Group Holdings Limited (WGH, or the group), incorporated in Namibia. The remaining 40% is owned by Santam. The ultimate majority shareholder is PSG Financial Services Limited (PSG Financial Services, formerly PSG Konsult Limited). Fellow subsidiaries include Hi-Five Corporate Finance (Namibia), Born Free Investments 487, Western Engineering Risk Specialists (SA) and Western Administration Services (SA). Western National SA is regarded as the core entity in WGH, accounting for approximately 94% of GWP as at 31 December 2022. The rating was based on a standalone analysis of Western National SA, because the group no longer consolidates its accounts at an insurance sub-level. However, the rating factors in the overall credit profile of the majority shareholder, PSG Financial Services, which was reviewed and affirmed in August 2023.

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Namibia National Reinsurance Corporation Limited (Jan 2024)

Namibia National Reinsurance Corporation Limited (NamibRe or the reinsurer) commenced operations in 2001, following the enactment of the Namibia National Reinsurance Corporation Act (of 1998). The main purpose was to contain the outflow of funds by means of offshore reinsurance placements. In terms of ownership, the business remains 100% owned by the Namibian government, which serves to support the reinsurer’s rating through access to mandatory cessions. The analysis was done on a stand-alone basis.

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Telesure Investment Holdings Proprietary Limited (Jan 2024)

Telesure Investment Holdings Proprietary Limited and its subsidiaries (together, TIH or the group) is an insurance group incorporated in South Africa, with interests in the financial services industry. The group is a wholly owned subsidiary of United Kingdom based BHL (SA) Holdings Limited, with the ultimate parent being BHL Holdings Limited (BHL Holdings), a company incorporated in Guernsey. Principal insurance subsidiaries within the group include Auto and General Insurance Company (RF) Limited (Auto & General), Budget Insurance Company (RF) Limited (Budget Insurance), Dial Direct Insurance (RF) Limited (Dial Direct), First for Women Insurance Company (RF) Limited (First for Women), Renasa Insurance Company Limited (Renasa) and 1 Life Insurance (RF) Limited (1Life). Other consolidated subsidiaries provide investments, administrative and other insurance related services.

Although TIH is part BHL Holdings, the latter no longer consolidates the performance of the group. TIH’s rating was therefore approached from a standalone sub-group perspective. GCR views Auto & General to be an essential entity within the group, reflecting its relevance in terms of size, sound history of performance and high level of assimilation. As a result, the rating of Auto & General is derived by considering the strengths and weaknesses of the broader group.

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Cell Insurance Company Limited (Dec 2023)

Cell was established in 2003 as the first licenced captive insurance company in Zimbabwe covering the risks of the national power utility company. This positioned the company as a unique alternative risk transfer provider in a market dominated by conventional insurance products. The company opened to external markets in 2004. Open market business was initially focussed on providing specialist insurance for mining, energy and hospitality risks, and branched out to conventional insurance products to diversify the product range. Customised short-term insurance and risk management products to corporates and individuals are underwritten through Alternative Risk Transfer Solutions.
Cell Insurance aims to improve diversification by growing its business in other non-core business lines and other new innovative products. The insurer also aims defend and strengthen its competitive positioning, supported by expertise in the mining and energy sectors and high-quality service attained through excellent claims settlement.

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Medihelp Medical Scheme (Dec 2023)

Medihelp is one of the oldest medical schemes in South Africa, offering over 100 years of experience in self-administration to its members. Therefore, the scheme benefits from a comparatively leaner operating cost structure, while demonstrating a certain degree of success in stabilising its membership scale and profile. Going forward, the scheme’s strategy is aimed at improving membership retention and growth, notably seeking to optimise its value proposition to consolidate presence in the retail space and increase penetration in the corporate market. Although this could result in a volatile membership base, the financial profile of the scheme is expected to remain relatively similar, supported by a strong ability to manage its risk pool through option pricing and benefit design.

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