(The following statement was released by the rating agency)
Oct 10 –
Overview
— We are assigning our ‘A-‘ long-term counterparty credit and insurer
financial strength ratings and ‘zaAA’ South Africa national-scale rating to
South Africa-based non-life insurer Santam Ltd. The outlook is stable.
— The ratings reflect Santam’s strong competitive position, strong and
stable operating performance, and strong financial flexibility.
— Santam’s capitalization partially offsets these strengths; it is only
“good,” owing to material intangibles and equity risk, and the economic and
industry risks inherent in operating in South Africa, including a concentrated
exposure to the banking sector.
— The stable outlook reflects our expectation that Santam will continue
to develop its competitive position through diversification, produce a
combined ratio of 92%-96% (in line with its long-term average of 94%) and
manage risk exposures in line with capital resources to support the current
“good” assessment.
Rating Action
Continued…
