Africa-Press – Mozambique. The prestigious North American rating company, AM Best, has affirmed its certification of Seguradora IMPAR for the third consecutive year, with the Financial Strength Rating of “B” (Fair) and the Long-Term Issuer Credit Rating of “bb” (Fair), with the outlook of the credit ratings of “Stable”. The ratings reflect SIM’s balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, limited business profile and marginal enterprise risk management (ERM), even in the adverse context of the COVID-19 pandemic.
Operating performance remained strong despite lower economic activity due to the COVID-19 pandemic
“In a context of economic recession and uncertainties in the global, regional and national economy, aggravated by the COVID-19 pandemic, we have seen, as a consequence, the worsening of the problems of the already fragile national business fabric, in particular. For this reason, we celebrated, with great pride and satisfaction, the Financial Strength Rating “B” and Long-Term Issuer Credit “bb” awarded to the IMPAR insurance company by the internationally renowned AM Best,” said Manuel Gamito, Chairman of the Board of Directors.
“IMPAR’s classification in these categories, in consecutive and adversity years, demonstrates parameters of management quality in the commercial relationship, as well as attesting to the solidity of its balance sheet. We believe that this is an encouraging sign for the recovery of the economy.”
IMPAR has a track record of solid and stable underwriting results, in spite of challenging market conditions, as demonstrated by a five-year (2016-2020) weighted average combined ratio and return on equity of 70.4% and 24.5%, respectively.
The insurer maintains a solid competitive position in its domestic market
In 2020, the company’s performance remained strong, with a net profit before tax of MZN 1,000 million (US$13.5 million), despite lower economic activity and challenging market conditions as a result of the COVID- 19.
This performance is supported by a good balance of earnings between underwriting and investment income. Also according to AM BEST, IMPAR maintains a solid competitive position in its domestic market as the third-largest insurer in terms of gross written premium.
About IMPAR
Founded in 1992, IMPAR is the first national insurance company with an international rating. This year, for the third consecutive time, the American agency AM Best attributed the Financial Strength Rating “B” (Good) and Long-Term Issuer Credit “bb” with the credit rating perspective attributed to “Stable”.
The insurer was distinguished nationally, with the award for “Best Company in Mozambique” in the Ranking of the 100 Largest Companies 2017 edition, promoted by KPMG.
IMPAR provides life and non-life insurance for companies and individuals and is one of the largest insurance companies in Mozambique. Its branch network covers the main cities in the country: Maputo, Matola, Beira, Tete, Quelimane, Nacala, Nampula and Pemba, and with the BIM distribution channel, it allows Impar to be throughout the national territory.
More information on AM BEST ratings can be obtained at the following address:
https://www.businesswire.com/news/home/20210923005830/en/AM-Best-Affirms-the-Credit-Ratings-of-Seguradora-
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