Top of its class

The A- rating with outlook Stable attests to GENRIC’s solid capital foundation and its ability to pay out claims.

The A- rating means that GENRIC has the ability to pay out sizable claims and remain sustainable as a business, offering huge peace of mind to GENRIC Insurance clients.GCR, which is the leading rating agency in Africa, submitted GENRIC to a gruelling and lengthy audit process in order to obtain the highly sought-after, but hard-earned A-rating.

“GENRIC reports a healthy liquidity position, underpinned by a large cash portfolio relative to claims and technical provisions,” GCR said in its announcement of GENRIC’s rating on 18 May. “Cash coverage of net technical liabilities is projected to remain at very high levels going forward, while operational cash requirements are managed at comfortable levels.”

GENRIC worked actively since 2012 to strengthen its balance sheet to become an A-rated short-term insurance company.

In 2014, GENRIC set out to further strengthen its capital position by acquiring strategic stakes in some of its UMAs. Additionally, GENRIC shareholders have supported management in its mandate to build a solid A-rated insurer by not drawing dividends for four years, Du Toit says.

In the current financial year, ending 30 June 2015, GENRIC’s profit after tax is set to grow with 60{f92ed3c07130d1d1f7afdfa9419415a96097991b3cd0130fcc5c47b28583da4c} from the previous financial year, which in turn was already 188{f92ed3c07130d1d1f7afdfa9419415a96097991b3cd0130fcc5c47b28583da4c} up from the year ending 30 June 2013.

“We’ve seen phenomenal growth,” Du Toit said, adding that the last two years have been GENRIC’s start of a growth phase. “We will continue on the growth path and consolidate the spectacular expansion we’ve had over the past few years.”

Even so, GENRIC’s top and bottom line growth is set to continue in double digits for the next three to five years, when it plans to achieve an annualised gross premium written of R1 billion.

Du Toit concludes: “Our brokers now have A-class peace of mind. And we invite all those UMAs who wanted to do business with us in heavy-weight risk categories, such as the marine and aviation space, but couldn’t before we had our rating, to come and talk to us now.  We will remain agile and flexible to accommodate your needs.”