Announcements

GCR updates international scale ratings for South African insurance companies

Johannesburg, 24 October 2014 – Global Credit Ratings (“GCR”) has updated the international scale rating outlooks of South African insurance companies following a recalibration of the mapping tables used for issuers/companies rated in South Africa.

SUMMARY RATING RATIONALE

The updated mapping table follows a revision of the Republic of South Africa’s sovereign rating outlook to Negative from Stable.

The rating actions do not reflect a change in the fundamental credit quality of the companies listed below. Rather, it is a blanket revision of the outlooks on the companies’ international ratings, following the parallel sovereign change.

The domestic ratings, and associated outlooks, of the companies below remain unaffected by the review of the sovereign and their own international rating outlooks (i.e. relative rankings are unchanged).

GCR will continue to monitor developments related to the sovereign and will respond to any impact on criteria and ratings.

The international scale claims paying ability ratings and outlooks publically accorded to insurers by GCR are summarised below:

Ratings List

National

International

Entity

Last

Previous (last rating)

Current (24/10/2014)

rating

CPA

Outlook

CPA

Outlook

CPA

Outlook

Auto & General Insurance Company Ltd

05/2014

AA-(ZA)

Stable

BBB

Stable

BBB

Negative

Hannover Reinsurance Africa Ltd

07/2014

AAA(ZA)

Stable

A-

Negative

A-

Negative

Nedgroup Insurance Company Ltd

06/2014

AA-(ZA)

Stable

BBB

Stable

BBB

Negative

Santam Limited

08/2014

AAA(ZA)

Stable

A-

Negative

A-

Negative

For a detailed glossary of terms utilised in this announcement please click here

ANALYTICAL CONTACTS

Primary Analyst
Marc Chadwick
Sector Head: Insurance
(011) 784-1771
Chadwick@globalratings.net

Committee Chairperson
Sheri Few
Senior Analyst
(011) 784- 1771
Few@globalratings.net

APPLICABLE METHODOLOGIES AND RELATED RESEARCH
Criteria for Rating Insurance Companies (updated July 2014)
GCR’s South African mapping tables (updated July 2014)

RATING LIMITATIONS AND DISCLAIMERS

ALL GCR’S CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://GLOBALRATINGS.NET/UNDERSTANDING-RATINGS. IN ADDITION, GCR’S RATING SCALES AND DEFINITIONS ARE ALSO AVAILABLE FOR DOWNLOAD AT THE FOLLOWING LINK: HTTP://GLOBALRATINGS.NET/RATINGS-INFO/RATING-SCALES-DEFINITIONS. GCR’S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, PUBLICATION TERMS AND CONDITIONS AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE AT HTTP://GLOBALRATINGS.NET.

SALIENT FEATURES OF ACCORDED RATINGS

GCR affirms that a.) no part of the rating was influenced by any other business activities of the credit rating agency; b.) the ratings were based solely on the merits of the rated entities, security or financial instrument being rated; c.) such ratings were an independent evaluation of the risks and merits of the rated entity, security or financial instrument; and d.) the validity of the ratings are for a maximum of 12 months, or earlier as indicated by the applicable credit rating document.

The credit ratings have been disclosed to the entities with no contestation of the rating.

The ratings above were solicited by, or on behalf of, the rated clients, and therefore, GCR has been compensated for the provision of the ratings.

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ALL GCR CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS, TERMS OF USE OF SUCH RATINGS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS, TERMS OF USE AND DISCLAIMERS BY FOLLOWING THIS LINK:HTTP://GCRRATINGS.COM. IN ADDITION, RATING SCALES AND DEFINITIONS ARE AVAILABLE ON GCR’S PUBLIC WEB SITE AT WWW.GCRRATINGS.COM/RATING_INFORMATION. PUBLISHED RATINGS, CRITERIA, AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. GCR's CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, COMPLIANCE, AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THIS SITE.

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