Mayfair Insurance, a company related with former Gatanga Member of Parliament and Nairobi gubernatorial contestant, Peter Kenneth, has been rated highly by South African Global Credit Rating (GCR) firm.
The positive rating of the Firm is based on prudent risk management and strong margins. According to Mayfair, their performance has been rated A-(KE), a grade valid until June 2018.
The rating comes when the Kenneth related corporation is in the process of acquiring a banking license, that will enable it operate as a banking institution in addition to the insurance services.
In the last few months, Kenyan insurance firms have been given a string of negative rankings by the Global Credit Rating (GCR), and the new rating to the Mayfair comes as a boost to the firm.
CIC Insurance Group and Moroccan-owned insurer Saham, Fidelity Shield Insurance and Canon Assurance all registered negative ratings in the new rankings.
“The Positive outlook reflects the potential for upward rating movement over the rating horizon, should strengthened earnings capacity be sustained,” GCR said.
Mayfair three-year average underwriting margin is at 18 per cent, while the operating margin averaged 36 per cent.
GCR said this has been a function of prudent underwriting and risk selection yielding low portfolio loss ratio, coupled with consistent commission relief from the low-retained fire industrial line.
“In GCR’s view, earnings capacity may be maintained at or above a strong range over the rating horizon, supported by stable earnings drivers,” the agency said.
