Source: (image: Sarah Reid)
The GCR rating provides Hollard’s customers with independent confirmation that the company is well-run and will be there to meet claim commitments when policyholders suffer a loss. This assessment of Hollard’s financial strength supplements the comfort that brokers and policyholders can draw from Hollard’s good standing with the Financial Services Board, and Hollard’s solvency capital ratios compare favourably with the industry.
A national scale claims-paying ability rating of AA(ZA), according to the GCR website, means the following: “Very high claims-paying ability relative to other issuers or obligations in the same country. Protection factors are strong. Risk is modest, but may vary slightly over time due to economic and/or underwriting conditions.”
Further, says the GCR website, “An outlook may be defined as ‘Stable’ if there is nothing to suggest that the rating will change.”
According to the GCR rating announcement, published on the FAnews website, it was based on the following: “The rating is underpinned by Hollard’s very strong competitive position. The insurer is the second largest participant in the market, with a 9% share of GWP, and a premium base of 8.5x the industry average.
“Going forward, GCR considers Hollard to be well placed to sustain its competitive strength, supported by its extensive intermediary network, strong brand and continued momentum in the corporate segment.
“GCR views Hollard’s revenue stream to be very well diversified across policyholders, buying segments and procurement channels. The insurer occupies a top tier position in six of the key statutory lines of business, each of which reflects material premium scale.”
