GCR has reaffirmed Regent Insurance Company Limited’s (“Regent”) national scale ZAR currency claims paying ability rating of AA- (double A minus). Regent was established in 1989, and is a wholly owned subsidiary of Imperial Holdings Limited (“Imperial”). Regent has successfully extended its distribution network over time, and offers a broad spectrum of commercial and personal lines insurance.
The rating was supported by the fact that the insurer has evidenced a strengthening in its international solvency margin in recent years (F11: 69%), whilst statutory solvency has remained comfortably above the regulatory requirement over the three year period to F11. In addition, cognisance was taken of the previously demonstrated capital support provided by Imperial. The conservative investment mix and comfortable liquidity measures were also favourably viewed. Note is taken of Regent’s comprehensive reinsurance programme, which is placed with highly rated entities, and provides an adequate level of protection to the balance sheet.
Regent has a demonstrated track record of attaining underwriting profitability, facilitated by unique product offerings and appropriate pricing of risks. Further, solid investment returns have enhanced the net line over the review period. Cognisance was, however, taken of the fact that Regent’s book is heavily weighted towards the highly competitive motor class, which is susceptible to elevated claims frequency.
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