Announcements Research

COVID-19 risks and oil price shocks likely to curb near term gains from regulatory reforms in the Ghanaian short term insurance industry

GCR Ratings has published an industry research piece on how COVID-19 risks and oil price shocks are likely to curb near term gains from regulatory reforms in the Ghanaian short term insurance industry.

Key highlights of the research are:

Regulatory efforts to improve the viability of the Ghanaian insurance sector, including ‘no premium, no pay’ policies, premium domestication and increased minimal capital amounts are all credit positives.

Announcements Research

High levels of premium receivables: a key rating restraint for short-term insurers and reinsurers in the CIMA zone

GCR Ratings has published an industry research piece on how high levels of premium receivables in the CIMA zone restrain the creditworthiness of insurers and reinsurers in the region, overshadowing otherwise sound credit profiles.

Key highlights of the research are:
High and persistent premium receivables are a systemic challenge in the CIMA zone;
Adjustments for premium receivables weaken risk adjusted capitalisation;

Announcements Research

Corporate Performance Negatively Impacted by COVID-19.

GCR Ratings has published an industry research piece on the impact of the COVID-19 crisis on the Kenyan Corporate Sector:

Key highlights of the research are:
GCR expects the disruptions due to COVID-19 to have a broad negative impact across the Kenyan economy, albeit that the severity will differ from sector to sector.
Specifically, due to almost complete cessation of global and local travel, as well as the practice of social distancing, GCR has immediately lowered the sector risk scores for Hospitality, and Discretionary retail as we expect of a significant decrease in performance over the next three months.

Announcements Research

External Risks Set to Challenge Kenyan Banks in 2020

GCR Ratings has published a Kenyan Banking Sector research piece for 2020.
Some of the highlights of the research are:
Currently, GCR expects the impact of the COVID-19 inspired global and domestic slowdown in Q2’20, alongside the locust swarm in Q1’20, to bring down economic growth to the region of +3% over the full year 2020, half that of 2019.
Non-performing loans and credit losses will increase over the year, although we expect the Central Bank of Kenya’s softening of classification and provisioning to stop an earnings shock and extend the reserving needs into 2021.