NAIROBI, 30 September 2015 –Standard & Poor’s Ratings Services (S&P) announced that it has renewed the African Trade Insurance Agency’s (ATI) ‘A/Stable’ rating for the seventh consecutive year. Since 2008, ATI has been rated the strongest insurer in Africa by the international credit rating agency, based largely on the company’s stable and strong capitalisation, prudent and transparent governance, consistently positive underwriting results and an effective investment strategy.
In the report, S&P noted “We assess ATI’s business profile as strong. This is based on our view of ATI’s role, public policy mandate, the strength and stability of its relationship with shareholders, and our assessment of its preferred creditor treatment (PCT). We view the agency’s governance as prudent and transparent.”
Other important aspects also underscored ATI’s renewed rating. These included an initiative managed by the international consultancy of PwC and supported by a grant from the European Investment Bank to reinforce the company’s underwriting standards and risk management. In its assessment, S&P stated that this initiative could “maintain the institution’s risk management as it expands to new activities and countries of operation.”
The African Development Bank’s recent announcement of US$30M funding of the membership for Cote d’Ivoire and Ethiopia, and the increased capital of Benin, is expected to lift ATI’s total share capital to over US$200 million, which will be another favourable aspect for future assessments of the company.
“ATI’s renewed ‘A/Stable/ rating by S&P is good news for all our member countries. With this rating we are able to support them to attract more investments and to provide more trade credit solutions. ATI’s ability to better assist member countries is the main driver behind our proactive strategy to increase shareholding and regional representation,” commented George Otieno, ATI’s Chief Executive Officer.
The report summarized ATI’s Strengths as:
• Strong business profile, reflecting growing and diverse shareholder base and prominent regional political insurer role in Africa.
• Accelerating growth in underwriting, with adequate risk management.
• Strong capital and adequate earnings.
For the full S&P report, visit http://www.ati-aca.org/images/SP%20Report%20-%202015.pdf.
