Guardrisk maintains AA credit rating

In the wake of the global financial crisis, ratings agencies have come under fire for being, at best, over-optimistic and, at worst, failing to manage conflicts of interest in the rating process.  So it comes as no surprise then that, in an effort to regain investors’ trust, rating agencies are proceeding with extreme caution when granting and reviewing ratings.

Thus two insurance companies in the Alexander Forbes Group – Guardrisk Life and Guardrisk Insurance – are celebrating after having their ratings reaffirmed.

Guardrisk Insurance has again been awarded an AA Claims Paying Ability rating from Global Credit Rating. This rating has been confirmed annually since it was first conferred in 1998 and Guardrisk Insurance remains South Africa's highest rated cell captive short-term insurer.

Guardrisk Life has been awarded an AA- Financial Strength rating from Global Credit Rating – the company has attained this rating each year since it was upgraded in 2006. Guardrisk Life is South Africa's only independently rated cell captive life insurer.

In its rating rationale Global Credit Rating recognised the diversity of Guardrisk’s client base, the companies’ stringent controls and “leading position in the cell captive market, complemented by management’s high level of expertise and track record”.

“It’s always rewarding to have our ratings reaffirmed, and particularly at a time when stable credit and financial ratings are relatively rare,” says Guardrisk MD, Herman Schoeman.