Agusto & Co. affirms the ‘Bbb(zbw)’ rating assigned to ZB Reinsurance Limited, with a stable outlook.
The rating expires on 30 June 2022.
Agusto & Co. hereby assigns a ‘Bbb(zbw)’ rating to ZB Reinsurance Limited (“ZB Re” or “the Reinsurer”). The rating reflects ZB Re’s membership of the ZB Financial Holding Company Limited (“ZBFH” or “the Group”), a Zimbabwe-based financial services company with total assets of ZWL$19 billion (or US$226 million) as at 31 December 2020 and interests in banking, insurance, stockbroking, investment and asset management. The Group supports ZB Re’s underwriting business through shared services, product cross-selling and risk management. The assigned rating is also underpinned by the Reinsurer’s good liquidity profile and capitalisation ratios, acceptable underwriting profits and an experienced management team. However, constraining the rating is the weak macroeconomic climate in Zimbabwe, characterised by hyperinflation and the persistent devaluation of the domestic currency, adversely impacting investment returns.