After appraising its operations, structures, financials and risk profile, GLICO LIFE and GLICO GENERAL Insurance Compay has been rated “B” by US based international rating company, Standard & Poor’s (S&P).
This has made GLICO the first insurance company in Ghana to be rated by S&P.
The group have already been rated an “A” by Global Rating in South Africa.
Speaking at a press briefing, Executive Chairman of GLICO Group, Kwame Achampong-Kyei said “it is no longer expedient for a company, especially an insurance company, that seeks to do business with major clients declare its own financial stability. There is the need for an internationally recognised independent organisation such as S&P, to measure an insurance company’s financial capacity in fulfilling its claims obligations to its customers.”
In explaining the rationale behind the “B” rating, S&P stated that even though GLICO was among the top insurers in Ghana with an adequate competitive position in its domestic market, the general frail economic outlook of the country, which is a “B”, negatively influenced their decision.
According to S&P, “our insurance industry and country risk analysis (IICRA) for Ghana is assessed as high. Although we view capital and earnings as upper adequate, the high risk position, reflecting the weaknesses of Ghana’s economy, is a major offsetting factor.”
The group were however proud of their achievement and promised to continue providing “the best of services to our customers in all spheres of our operations.”