London, 12 October 2023 – Africa Specialty Risks (ASR), the pan-African focused reinsurance group, is pleased to announce that Moody’s Investors Service (Moody’s) has assigned a Baa1 long term insurance financial strength rating (IFSR) to ASR Re Limited (ASR Re).
The rating is based on ASR Re’s: (i) growing relevance and client base in the specialty and corporate insurance market in Africa; (ii) strong capital adequacy and low risk invested assets exposure; and (iii) strong underwriting profitability to date.
Moody’s acknowledges the benefits brought to ASR by strong and supportive investors, including leading African investment firm Helios Investment Partners, and three large development finance institutions.
The stable outlook reflects Moody’s view that ASR Re is well positioned to continue growing its business volumes while maintaining underwriting discipline and good capital adequacy.
Moody’s also highlighted that ASR’s business model and structure do not preclude the company from achieving a higher rating level.
ASR Re Bermuda continues to be a key part of the ASR Group and its growth strategy, as it looks to expand into new territories while maintaining its ambition of filling the insurance gap on the African continent.
Mikir Shah, CEO of ASR commented, “Our Moody’s Baa1 rating, the highest for any private insurer and fourth highest in Africa overall, is an important component of the next stage of our strategic journey. This considers ASR’s business maturity with continued delivery ahead of plan in derisking investment into and across Africa. We have outgrown our bbb+ AM Best rating which is no longer of value to our stakeholders and therefore requested it be withdrawn.”
“We look forward to our relationship with Moody’s going forward as a top tier rating agency globally and in the insurance arena with the widest ratings coverage and analytical expertise on the African continent.”
ASR Re is a wholly owned subsidiary of ASR Holdings Limited (Mauritius), the non-operating holding company of the ASR group.
Moody’s is a leading global provider of credit ratings, research, and risk analysis with more than 33,900 rated entities and transactions comprising approximately $73 trillion of rated debt.
Cap Structure acts as rating advisors to ASR.
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Mikir Shah, CEO
Ciaran O’Donnell, CFO
Africa Specialty Risks (ASR) provides comprehensive risk mitigating solutions through high quality underwriting to local and global customers across the African continent, giving them the confidence to grow their businesses sustainably.
ASR works proactively with local regulators to develop skills and provide training to local underwriters. Environmental, social, and governance considerations are central to ASR’s values, particularly in relation to local capacity building.
ASR is backed by Helios Investment Partners’ Fund IV and benefits from their extensive reach across Africa, as well as their knowledge and experience in our key markets.