Tropical ReInsurance was recently conferred with an international credit rating BBB+, a development which will open doors for trade especially in foreign markets.
The prestigious feat was achieved through demonstrated financial strength and the claims paying ability of the company. Conferred by rating agency GCR this development is an indication that Tropical Re is able to meet its obligations as they fall due.
Speaking during an event to honour this achievement the managing director of Tropical Re, Ushe Mungaraza, said companies across the industry now require their securities to be rated.
“In this regard, we saw the need to undergo the rating process for the comfort of our clients. We embarked on the rating process and completed it in a record time of a month which speaks to the organisation and efficiency of our team,” he said.
Mungaraza explained that over the years, they had traded without a Credit Rating but their clients still supported them.
“We value the support you gave us as all-weather friends,” He added that in the spirit of transparency, disclosure and coming first, Tropical Re is among the first companies to comply with the new disclosure requirement that mandates insurance companies to publish financial statements on their websites.
“Our new website allows you to view and download our audited financial statements from the year 2013,” said Mungaraza.
He pledged to his clients that the credit rating marked the birth of a new era for the company.
“Like you have seen already, Tropical Re shall be moving forward in a different but more exciting dimension. If ever there is anything that history in quest of our achievements taught us it is that, if ever you want to go fast go alone, and if you want to go far go along with others.
That said our destiny as a reinsurance giant remains intertwined to your endless growth and support,” Mungaraza extended his gratitude to the clients for their unwavering support since inception.
“As Tropical Re, we are happy that through your continued support since our inception we have become a security you can rely on. It goes without saying that the journey wasn’t a stroll in the park for we have had multiple operating environmental challenges to which this far got outsmarted.”
He said despite challenges facing the industry, Tropical Re’s performance has remained solid.
He also thanked the board for backing their strategies.
“Allow me to express my gratitude to the board that has given us guidance all the time, and to commend the greatest team that I work with at Tropical Re, they have stood together through all times and proven strength just like what our brand represents,”.’he said.
Giving her remarks, board chairperson of Tropical Re Roseline Nhamo said despite the turbulent environment worsened by the Covid-19 infections, 2020 has been a very great year for the company.
We have witnessed a real growth and both the technical and underwriting results show a business that is efficiently run.”
Speaking on the rating Nhamo said, “For a reinsurance company, the rating it achieves can be vital, a good rating can help attract new business or open new possibilities and also gives peace of mind to our clients whereas a lower or falling rating may put them out of business.
“The BBB+ rating obtained by the team is indeed a reflection of the fact that we have consciously strived to build an institution that is responsive to stakeholder needs and benefits
To B5 from a flexible and pragmatic management approach to embrace new practices in sync with the rapidly changing times and client expectations.”
She added that as a company their thrust remained on investing in a talent pool, across the leadership team and the other levels of management and business operations.
“It is this resource base that enables us to continue to lead the industry on many fronts and address our customer requirements effectively.
“Because we sell security our capital position is key, I am delighted to announce that we have put in place prudential capital management strategies that go beyond regulatory minimums.
With this in mind we are working to ensure our capital is above USD5 million at any given point,”
In her concluding remarks Nhamo said 2020 has been a year of good progress for the company.
“We have gotten stronger in the midst of the pandemic with a boosted team that positions us well to continue executing our strategy over the coming years. The BBB+ national rating is indeed symbolic, signalling exciting times ahead. The challenge is on maintaining the rating, improving upon it and continuing to pay claims as we have always done,” Meanwhile due to Covid-19, the cocktail was attended by a limited number of delegates.
“It is part of our organisational culture to celebrate even the smallest of wins and achievements, we have done this over the years and in doing this, we realised it gives the team more energy and the urge to achieve more,” said Mungaraza.