RA International FZCO (UAE) (Jul 2022)

Founded in 2004, RA Int is one of Africa’s leading remote site service providers. The company offers construction, integrated facilities management (“IFM”) and supply chain services to clients operating in the world’s most challenging environments, having carried out projects in Afghanistan, Chad, South Sudan, Uganda, Somalia, Tanzania and many other countries. RA Int is headquartered in Dubai, UAE with an operational base in Kenya. In 2018, RA International Group PLC listed on the AIM Exchange in London, with its sole asset being its 100% shareholding in RA Int.

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ICEA LION General Insurance Company Limited (Jul 2022)

ICEA LION Insurance Holdings Limited is an investment holding company established in 2020, with interests in insurance and asset management businesses in Kenya, Uganda and Tanzania. The group is owned by First Chartered Securities (“FCS”) with a majority stake of 75.9%. FCS is in turn wholly owned by the ultimate parent company, Asset Managers Limited. The remaining shareholding is held by Eastern Africa Holdings Limited, an entity incorporated in the United Kingdom and fully-owned by Leapfrog Strategic African Investments.

Subsidiaries housed and consolidated under the group include ICEA LION General (together with its subsidiary; ICEA LION General Insurance Company (Tanzania) Limited), ICEA LION Life Assurance Company Limited (encompassing Ugandan subsidiaries; ICEA LION Life Assurance Company (Uganda) Limited, ICEA LION General Insurance Company (Uganda) Limited, and ICEA LION Asset Management (Uganda) Limited), ICEA LION Asset Management Limited and ICEA LION Trust Company Limited.

ICEA LION Holdings is the majority shareholder (with an 80% stake) and nearest consolidating parent of ICEA LION General. The subgroup is considered a core entity of the group, accounting for 44% of gross written premiums in FY21, a contribution with potential improvement to c. 50% if the pending reorganisation involving the planned transfer of ICEA LION General Insurance Company (Uganda) Limited to the subgroup is successfully concluded. Considering the materiality of the subgroup’s contribution to the group’s top line, the analytical method followed for the purpose of determining ICEA LION General’s rating is a group approach, with the insurer’s credit strength equalised to that of ICEA LION Holdings.

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ICEA LION Life Assurance Company Limited (Jul 2022)

ICEA LION Holdings is an investment holding company established in 2020, with interests in insurance and asset management businesses in Kenya, Uganda and Tanzania. The group is owned by First Chartered Securities (“FCS”) with a majority stake of 75.9%. FCS is in turn wholly owned by the ultimate parent company, Asset Managers Limited. The remaining shareholding is held by Eastern Africa Holdings Limited, an entity incorporated in the United Kingdom and fully-owned by Leapfrog Strategic African Investments.

Subsidiaries housed and consolidated under the group include ICEA LION Life, encompassing its Ugandan subsidiaries (ICEA LION Life Assurance Company (Uganda) Limited, ICEA LION General Insurance Company (Uganda) Limited, and ICEA LION Asset Management (Uganda) Limited), ICEA LION General Insurance Company Limited, together with its subsidiary (ICEA LION General Insurance Company (Tanzania) Limited), ICEA LION Asset Management Limited and ICEA LION Trust Company Limited.

ICEA LION Life is a wholly owned subsidiary of ICEA LION Holdings which is also the underwriter’s nearest consolidating entity. Within the ICEA LION Holdings structure, the subgroup is a core contributor (above 50%) to group revenues, assets, liabilities and profitability, which are important factors shaping the credit profile of group. Considering the materiality of the subgroup’s contribution to the group’s credit fundamentals, the analytical method followed for the purpose of determining ICEA LION Life’s rating is a group approach, with the insurer’s credit strength equalised to that of ICEA LION Holdings group.

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CIC Life Assurance Limited (Jul 2022)

Founded in 2011 following de-consolidation of the Cooperative Insurance Company Limited’s short and long term business units, CIC Life Assurance Limited is a wholly owned subsidiary of CIC Insurance Group Plc, a large insurance and investment company with footprints in Kenya, South Sudan, Uganda and Malawi. The Cooperative Insurance Company Limited is the largest shareholder in the group, with a stake of 74.3% at FY21.

CIC Life constituted c. 31% and 44% of the group’s gross written premiums and total assets at FY21, respectively. Consistent with GCR’s group ratings approach, the analytical approach followed is a stand-alone with considerations for a group cap.

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AIG Kenya Insurance Company Limited (Jul 2022)

AIG Kenya (formerly Chartis Kenya) is a privately owned company licensed by the Insurance Regulatory Authority of Kenya to underwrite all classes short term insurance business, except medical and micro insurance, since 1972. The insurer is a subsidiary of AIG MEA limited (“the group”) which has a 66.7% stake in the entity while the balance is held by NCBA Bank Limited, a commercial bank based in Kenya. The group is a network of property casualties, operating within Africa and the Middle East.

The analytical approach applied was a standalone analysis with considerations on the group cap/support dependent on the group’s credit profile strength.

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CIC General Insurance Limited (Jul 2022)

CIC General is an insurance company licenced in Kenya to underwrite all classes of the short-term business since 1978. The entity is the flagship company of its immediate parent, CIC Insurance Group Plc, a listed entity on the Nairobi Securities Exchange, contributing about 58% and 32% of the group’s premiums and assets at FY21, respectively. CIC group houses six subsidiaries operating in four countries, with minority stake in select subsidiaries being held by Cooperative bank of South Sudan (South Sudan subsidiary), MUSSCO and Farmers union of Malawi (subsidiary in Malawi).

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Kenya National Police Deposit Taking SACCO Society Limited (Jul 2022)

The national scale issuer ratings on Kenya National Police DT SACCO were accorded on a stand-alone analytical approach as the entity is not part of group. The Society is incorporated in Kenya under the Cooperative Society Act, Cap 490 and licensed under the Sacco Societies Act No. 14 of 2008, and is domiciled in Kenya.

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Operating Environment Overview | Kenyan Banking Institutions (Jul 2022)

Kenya’s economy registered a strong rebound in 2021 after the COVID-19 shock in 2020. Real GDP growth accelerated to 5.1% in 2021 after contracting by 0.3% in 2020, according to the International Monetary Fund “(IMF”). Notwithstanding this, the economic outlook remains exposed to global and domestic risks due to continued COVID-19 challenges, tightening global financing conditions, and possible pickup in political tension related to Kenya’s upcoming general elections scheduled for August 2022. New challenges include drought in the northern regions of the country and emerging security needs. The IMF provided emergency COVID-19 pandemic support in May 2020, and in April 2021 approved a three-year financing package (c.US2.3bn) to support the next phase of Kenya’s COVID-19 response and the government’s plan to reduce debt. The IMF funding support program will also advance Kenya’s broader reform and governance agenda, including addressing weaknesses in some state-owned enterprises (“SOEs”), strengthening transparency and accountability through the anti-corruption framework, strengthening the monetary policy framework, and supporting financial stability.

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East African Development Bank (Jul 2022)

EADB is a regional MDB that is mandated to strengthen socio-economic development and regional integration. It has ownership by 4 African member states and a few institutional shareholders. Headquartered in the Republic of Uganda, EADB was established in 1967 under the treaty for East African Community which was disbanded in 1977 and later revived in 1980. Following this, the Bank was re-established under its own charter, with an expanded potential membership, mandate, and operational scope. As such, EADB is accorded preferred creditor status equivalent to that of the AfDB including privileges and immunities such as diplomatic and tax-exempt status.

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Peer Comparatives for Kenya Short Term Insurance (Jun 2022)

GCR Ratings introduces the Peer Comparatives for Kenya Short Term Insurance. The report forms part of the Short Term Insurance Peer Comparatives series, containing key metric comparatives and summarised financial synopses of insurance entities that operate within select markets, and are publicly rated by GCR. Each report provides statistical tables and graphs reflecting collated trends and relative metrics for premium income, underwriting & net profitability, and solvency & liquidity, and provides a comparison of balance sheet and income statement data over the past five years.

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