GCR has maintained the domestic ZAR currency claims paying ability rating of Clientèle Life Assurance Company Limited (“Clientèle”) at A+ (single A plus).
The rating was supported by Clientèle’s experienced management team and high level of technical expertise, as well as its strong position and brand in the direct life market. Furthermore, the company has a track record of strong profitability, which has supported a consistent increase in net surplus assets. This has underpinned stable CAR cover, which amounted to 3x at FYE10 and was comfortably above minimum statutory requirements. Asset/liability matching risk is well managed through the upfront purchase of investments with terms and interest rates that match the liabilities associated with guaranteed investment business. These are placed with highly rated South African counterparties.
Cognisance was taken of the pressure on volume growth in recent years, which has been a function of the challenging economic conditions. This has, nevertheless, been partly alleviated by growth into higher margin products.
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