Announcements Insurance Rating Alerts

GCR places ICE’s national scale financial strength rating of A-(MZ) on Evolving Outlook and withdraws the rating following the ongoing acquisition by Hollard.

Rating action

Johannesburg, 30 September 2021 – GCR Ratings (“GCR”) has placed an Evolving Outlook on the A-(MZ) national scale financial strength rating of International Commercial & Engineering ICE Seguros, SA’s (“ICE”). At the same time, the rating has been withdrawn, following the ongoing acquisition by Hollard Mocambique Companhia de Seguros SARL (“Hollard Mozambique”). Accordingly, GCR will no longer provide rating coverage on the entity.

Rated entity / issue Rating class Rating scale Rating Outlook/Watch
International Commercial & Engineering ICE Seguros, SA’s Financial strength National WD WD

Rating rationale

Prior to the withdrawal of the rating, the credit profile of ICE was supported by very strong capitalisation and liquidity, offsetting moderate earnings and business profile. However, due to the ongoing acquisition of the entire ICE’s business by Hollard Mozambique, there could be a change in the ability of the insurer to meet policyholder obligations. The transaction is expected to result in the transfer of ICE’s entire insurance portfolio to Hollard, and the orderly runoff of ICE which will be deregistered in line with regulatory guidance.

Due to the fact that GCR had no view of the Hollard Mozambique’s financial strength at the time of the withdrawal, the evolving outlook reflects the potential bi-directional impact that the corporate transaction could have on policyholder obligations.

Analytical contacts

Primary analyst Fleur Ngassa Analyst: Insurance Ratings
Johannesburg, ZA MarlaineN@GCRratings.com +27 11 784 1771
Secondary analyst Tichaona Nyakudya Senior Analyst: Insurance Ratings
Johannesburg, ZA TichaonaN@GCRratings.com +27 11 784 1771
Committee chair Matthew Pirnie Group Head of Ratings
Johannesburg, ZA MatthewP@GCRratings.com +27 11 784 1771

Related criteria and research

Criteria for the GCR Ratings Framework, May 2019
Criteria for Rating Insurance Companies, May 2019
GCR Ratings Scales, Symbols & Definitions, May 2019
GCR Country Risk Scores, August 2021
GCR Insurance Sector Risk Scores, April 2021

Rating history

International Commercial & Engineering ICE Seguros, SA
Rating class Review Rating Scale Rating Outlook Date
Claims paying ability Initial National BBB+(MZ) Stable Outlook April 2015
Financial strength Last National A- MZ) Stable Outlook June 2020

SALIENT POINTS OF ACCORDED RATING

GCR affirms that a.) no part of the rating process was influenced by any other business activities of the credit rating agency; b.) the rating is based solely on the merits of the rated entity, security or financial instrument being rated; and c.) such rating is an independent evaluation of the risks and merits of the rated entity, security or financial instrument.

The credit rating has been disclosed to the rated entity. The rating was solicited by, or on behalf of, the rated entity, and therefore, GCR has been compensated for the provision of the rating. The rated entity participated in the rating process via virtual management meetings, and other written correspondence. Furthermore, the quality of information received was considered adequate and has been independently verified where possible.

The information received from the rated entity and other reliable third parties to accord the credit rating included:

  • Audited financial results as at 31 December 2020;
  • Four years of comparative audited financial statements to 31 December
  • Full year budgeted financial statements for 2021;
  • Management accounts as at 31 August 2021;
  • Reinsurance cover notes for 2021; and
  • Other relevant documents.
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