Business

Old Mutual Short-Term Insurance’s credit rating affirmed

Kushatha Moswela
 
Kushatha Moswela

According to the 2021 GCR report, Old Mutual Short-Term Insurance Botswana national scale was rated AA while the country’s international financial strength was rated at BB and national scale financial strength was rated AA.

The rating hence reflects the business’ overall credit worthiness and resilient balance sheet. Old Mutual managing director, Kushatha Moswela said despite the local competitive landscape and an overall challenging year, GCR’s stable outlook reflects Old Mutual Short-Term’s efforts to improve its competitive position and grow its gross premiums.

In this respect, she said Old Mutual Short-Term Insurance Botswana is expected to maintain growth in the medium term. Its competitive position is strong, supported by its pan-African brand which operates in 14 countries across two regions; Africa and Asia (China). “Old Mutual Short-term Botswana is pleased to receive external recognition of its strong liquidity position and the continued success of its growth strategy, as affirmed by GCR’s stable credit rating. We remain appreciative of the continued support from our clients,” she commented on the findings. Moswela added that Old Mutual’s Group’s presence in Botswana is well positioned to take advantage of the positive growth as it looks to expand its broker led business.

The expansion will include the leading players under the refreshed broker proposition, while ramping up the roll out of agency and bancassurance relationships, together with a potential first-to-market direct channel. She said this is being augmented by inroads into specialty products including aviation insurance, through utilising expertise within the group. GCR is a leading rating agency which has established itself in Africa, accounting for the majority of all ratings accorded on the African continent.

Through its local presence in Mauritius, South Africa, Nigeria, Kenya, Senegal and Zimbabwe, GCR has the largest rating team in Africa which gives it unmatched on-the-ground presence.

On the other side, Old Mutual Botswana provides financial solutions to individuals, small and medium-sized businesses and corporates in Botswana. It offers Short term covers that include household, car and business insurance as well as life insurance products such as group funeral insurance, group income protection,and disability benefits amongst others.

Old Mutual was established in Botswana in 1994 under the name Mutual and Federal and was rebranded to Old Mutual Botswana in 2014. In 2017 Old mutual introduced its Life Insurance Business.