GCR has accorded Gabonese insurer, Assinco S.A. (“Assinco”), a first time FCFA currency claims paying ability rating of A (single A). The rating signifies the company’s high claims paying ability and above average protection provided to policyholders.
Assinco was established in 1997 and displays a diverse shareholder base, including Compagnie Du Komo (26%), Banque Gabonaise De Developpement (17%), BGFI Bank (17%) and Delta Synergie (15%). The rating was supported by Assinco’s membership in the Globus network, providing a suitable framework for the transfer of skills and improved growth opportunities. Furthermore, the company is well capitalised, and has recorded progressive increases in international solvency, from 47% in F06 to 61% in F09. Protection for policyholders is further underpinned by a comprehensive reinsurance programme, underwritten by leading global reinsurers. In addition, Assinco displays a conservative investment stance, supportive of comfortable liquidity measures. A level of concentration risk was, however, noted with respect to banking counterparties.
Notwithstanding a relatively stable and predictable earned loss ratio over the review period, a progressively increasing cost base has served to undermine operating flexibility, with the insurer reporting consecutive underwriting losses since F08. From an industry wide perspective, cognisance was also taken of the relatively underdeveloped insurance market in Gabon, and long delays in claims settlement and premium collection.
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