News Africa06 Aug 2025

Africa Specialty Risks expects IFS ratings upgrade 'in coming months'

| 06 Aug 2025

Moody's Ratings (Moody's) has changed the outlook on its 'Baa1' insurance financial strength rating (IFSR) for ASR Re to 'Positive' from 'Stable', with the group expecting its ratings to be upgraded shortly.

In a statement, Mr Mikir Shah, CEO of Africa Specialty Risks (ASR), the (re)insurance group focussed on developing markets, said, “We are very pleased with the positive outlook from Moody’s on our ‘Baa1’ rating, alongside Fitch’s positive outlook on our ‘BBB+’ rating last September. This demonstrates confidence in our trajectory from both rating agencies to ‘A-/A3’, which we expect soon.”

ASR continues to expand our business lines, geographies and operational capabilities, which has led to consistently strong underwriting profitability and signals the upward momentum of our ratings.”

ASR noted that Moody’s has highlighted several key strengths underpinning this revision, including:

  • Strengthened market position: A strengthened market position and increased relevance in the corporate and specialty insurance market across Africa

  • Improved diversification: ASR has achieved improved business and geographic diversification, with a more balanced mix across lines and expansion beyond Africa

  • Successful Lloyd’s syndicate launch: The launch and growth of Syndicate 2454 significantly enhances ASR’s business origination capabilities, expanding its reach and product offering

  • Broader risk-sharing partnerships: ASR benefits from a greater breadth and depth in its pool of risk-sharing partners, including several strong (re)insurance providers on its binder panel and capital providers to its syndicate

  • Sustained underwriting profitability: ASR has demonstrated consistently strong underwriting profitability to date, reflecting disciplined underwriting practices and prudent reserving 

Moody’s has indicated that an upgrade to an ’A3’ rating would require sustained business volume growth in line with plan, continued strong underwriting performance (loss ratios at or below 60%), progress in reducing the inter-company loan to affiliates, and an increased level of on-balance-sheet capital to improve operating flexibility and resilience.

ASR’s statement said, “ASR is confident that it will meet these conditions in the coming months, paving the way for an upgrade to an ‘A3’ rating.”

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