Moody'sassigns a new rating to ASR Corporation
Africa Specialty Risks (ASR), a leading player in the corporate and specialty insurance market across Africa, has received a positive outlook revision on its Moody's Baa1 insurance financial strength rating. This positive development comes as a result of the company's continued growth and strong performance.
Moody's, a leading global provider of credit ratings, research, and risk analysis, has indicated that an upgrade to an A3 rating for ASR would require sustained business volume growth in line with plan, continued strong underwriting performance, progress in reducing the inter-company loan to affiliates, and an increased level of on-balance-sheet capital to improve operating flexibility and resilience.
The key factors contributing to this positive outlook include strengthened market position, improved business and geographic diversification, successful launch and expansion of its Lloyd’s syndicate (Syndicate 2454), broader and deeper risk-sharing partnerships, and consistently strong underwriting profitability.
ASR has increased its relevance and presence in the market, enhancing its competitive positioning. The company has expanded beyond Africa and achieved a more balanced mix across business lines and geographies, reducing concentration risk.
The launch and growth of Syndicate 2454 has significantly boosted ASR’s business origination capabilities, product range, and international visibility. This syndicate, operated under Lloyd's, has provided ASR with a broader pool of high-quality reinsurers, insurers, and capital providers, strengthening underwriting capacity and financial stability.
ASR has also benefited from a wider pool of risk-sharing partners, including several strong (re)insurance providers on its binder panel and capital providers to its syndicate. This diversification of partners has further enhanced the company's resilience and financial strength.
Moody's highlighted several key strengths underpinning the revision, including a strengthened market position, improved diversification, successful Lloyd's syndicate launch, broader risk-sharing partnerships, and sustained underwriting profitability. ASR's Middle Eastern and Mauritian subsidiaries, Africa Specialty Risks Mauritius and ASR Middle East Limited, have also agreed Binding Authority Agreements with Eureka Re, a multinational reinsurer.
ASR's CEO, Mikir Shah, expressed his pleasure about the positive outlook from Moody's and Fitch's positive outlook on ASR's BBB+ rating last September. He expressed confidence that the company will meet the conditions required for an upgrade to an A3 rating in the coming months.
This positive outlook from Moody's, coupled with ASR's consistent performance and strategic expansion, bodes well for the company's future growth and potential upgrade to higher ratings in the near future.
[1] Strengthened market position
[2] Improved business and geographic diversification
[3] Successful launch and expansion of its Lloyd’s syndicate (Syndicate 2454)
[4] Broader and deeper risk-sharing partnerships
[5] Consistently strong underwriting profitability
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