AM Best Affirms the Credit Ratings of Seguradora Internacional de Moçambique, S.A.


LONDON–(BUSINESS WIRE)–#insuranceAM Best has affirmed the Financial Strength Rating of B (Fair) and the Long-Term Issuer Credit Rating of “bb” (Fair) of Seguradora Internacional de Moçambique, S.A. (SIM) (Mozambique). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect SIM’s balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, limited business profile and marginal enterprise risk management (ERM).

SIM’s balance sheet strength is underpinned by its risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), at year-end 2020. Capital consumption is driven primarily by asset risk arising from the company’s concentrated investment portfolio that is weighted toward domestic fixed income securities and real estate. The balance sheet strength assessment also factors in the company’s strong liquidity and prudent reserving. A partially offsetting factor is SIM’s moderate dependence on reinsurance, although the associated credit risk is managed through the use of a stable reinsurance panel of solid credit quality.

SIM has a track record of solid and stable underwriting results, in spite of challenging market conditions, as demonstrated by a five-year (2016-2020) weighted average combined ratio and return on equity of 70.4% and 24.5%, respectively. In 2020, the company’s operating performance remained strong, with a net profit before tax of MZN 1.0 billion (USD 13.5 million), despite lower economic activity and challenging market conditions as a result of the COVID-19 pandemic. SIM’s strong operating performance is supported by a good balance of earnings between underwriting and investment income.

SIM maintains a solid competitive position in its domestic market as the third-largest insurer in terms of gross written premium. However, the company’s profile is limited to Mozambique, which exposes it to very high levels of economic, political, and financial system risk. This presents challenges for the company, although AM Best expects these risks to be mitigated partly by the company’s strong market position and evolving ERM practices.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

Copyright © 2021 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


Marving Lopez
Associate Financial Analyst
+44 20 7397 4389

Jessica Botelho-Young, CA
Associate Director, Analytics
+44 20 7397 0310

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159

Jim Peavy
Director, Communications
+1 908 439 2200, ext. 5644

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