Zimbabwean insurer downgraded

A Zimbabwe-based financial services company’s national scale financial strength rating has been downgraded to A-(ZW), from A(ZW), with a stable outlook by a rating agency.

The rating agency has dropped Zimnat Life Assurance Company on sustained deterioration in the insurer’s earnings profile due to a more pronounced impact of reduced scale and adverse changes in product offering dynamics caused by the hyperinflation.

Zimnat’s stable outlook reflects the rating agency’s expectation that earnings will be sustained within a positive range and support solvency levels.

This comes after the rating agency pulled down Zimnat’s outlook in 2020, due to the expectations of financial profile vulnerability to the on-going volatility in the operating environment in Zimbabwe brought on by the coronavirus 2019 (COVID-19) crisis.

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