Guardrisk Insurance Company Limited -- Moody's announces completion of a periodic review of ratings of Guardrisk Group
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Guardrisk GroupGlobal Credit Research - 04 Mar 2021London, 04 March 2021 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Guardrisk Group and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review discussion held on 25 February 2021 in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. The review did not involve a rating committee. Since 1 January 2019, Moody's practice has been to issue a press release following each periodic review to announce its completion.This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.Key rating considerations are summarized below.The Ba2 global scale, and Aaa.za national scale (for the South African entities), insurance financial strength ratings assigned to entities in the Guardrisk group reflect its good market position as the largest cell captive insurer in the South African market, low underwriting risk due to its predominately fee based model, diverse product mix across life insurance and short-tailed non-life insurance lines, and strong profitability. These strengths are partially offset by its investment portfolio's concentrated exposure to the South African economy and banking system with a significant majority of Guardrisk group's invested assets comprising South African bank deposits, government debt and investments in money market funds. Guardrisk's ratings are linked to the South African sovereign rating (Ba2).The rated entities included in the Guardrisk group include Guardrisk Insurance Company Limited (Guardrisk Insurance), Guardrisk Life Limited (Guardrisk Life) and Guardrisk International Limited PCC (Guardrisk International), incorporated in Mauritius (Government of Mauritius, Baa1).This document summarizes Moody's view as of the publication date and will not be updated until the next periodic review announcement, which will incorporate material changes in credit circumstances (if any) during the intervening period.The principal methodologies used for this review were Property and Casualty Insurers Methodology published in November 2019 and Life Insurers Methodology published in November 2019. Please see the Rating Methodologies page on www.moodys.com for a copy of these methodologies.This announcement applies only to EU rated, UK rated, EU endorsed and UK endorsed ratings. Non EU rated, non UK rated, non EU endorsed and non UK endorsed ratings may be referenced above to the extent necessary, if they are part of the same analytical unit.This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history. Dominic Simpson VP - Senior Credit Officer Financial Institutions Group Moody's Investors Service Ltd. One Canada Square Canary Wharf London E14 5FA United Kingdom JOURNALISTS: 44 20 7772 5456 Client Service: 44 20 7772 5454 Antonello Aquino Associate Managing Director Financial Institutions Group JOURNALISTS: 44 20 7772 5456 Client Service: 44 20 7772 5454 Releasing Office: Moody's Investors Service Ltd. 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