GCR Ratings upgrades Old Mutual General Insurance Kenya to A (KE) on stronger capital
GCR Ratings has upgraded Old Mutual General Insurance Kenya's national-scale financial strength rating to A(KE) from A-(KE), with a Stable Outlook.
The upgrade is underpinned by improved capital quality following the successful conversion of the Group’s debt into preference shares, alongside stronger capital adequacy and improved underwriting performance. The A(KE) rating reinforces confidence in Old Mutual General Insurance Kenya’s financial strength and its capacity to meet its obligations to customers and other stakeholders.
“The group’s liquidity profile registered within a healthy range, supported by stable asset allocation. In this respect, liquid assets including government securities accounted for 44.1% of the investment portfolio as of 31 December 2025 (31 December 2024: 47.0%),” GCR said in a statement.
The rating provides an independent assessment of the insurer’s financial strength and its ability to meet its financial obligations. It also reinforces confidence among customers, brokers, agents and other business partners in the insurer’s financial resilience.
“The upgrade is an important independent affirmation of the progress we are making to strengthen our financial position and build a more resilient insurance business,” said Old Mutual General Insurance Kenya Managing Director Japheth Ogalloh.
As a core operating entity within Old Mutual Holdings Plc, the insurer’s rating also takes account of the wider Group’s financial profile and the implied support available from Old Mutual Limited. GCR cited the history of financial support, strategic relevance and operational integration with the wider Old Mutual Group as factors supporting the assessment.
Old Mutual Holdings Plc’s total capital increased to KES 20.4 billion as at 31 December 2025, from KES 19.7 billion a year earlier. As a result, the GCR capital adequacy ratio strengthened to 1.6 times, from 1.4 times in 2024, while the statutory solvency margin remained strong at 190 per cent.
The Group’s liquidity position also remained within a healthy range. Liquid assets, including government securities, accounted for 44.1 per cent of the investment portfolio, while GCR’s liquidity coverage ratio improved to 1.7 times, from 1.4 times in the previous year.
GCR also noted an improvement in Old Mutual General Insurance Kenya’s underwriting performance, with the combined ratio improving to 101 per cent in 2025, from 104 per cent in 2024. The insurer maintained a strong market position, accounting for 8.2 per cent of Kenya’s general insurance market and contributing 55.9 per cent of the Group’s insurance revenue.
Looking ahead, GCR expects earnings to remain relatively stable, supported by the insurer’s ongoing portfolio optimisation and underwriting management initiatives.
The Stable Outlook reflects GCR’s expectation that liquidity will remain within a moderately strong range, with its liquidity coverage ratio expected to remain between 1.2 and 1.3 times. Capitalisation is also expected to remain within the intermediate range, with the GCR capital adequacy ratio remaining above 1.2 times.