Fitch trims Sanlam Life

Fitch Ratings said it lowered San Life Insurance Ltd.’s issuer default rating to B from B+ and placed all its ratings on rating watch negative.

“The downgrades reflect a significant deterioration in the Sanlam Kenya group's stand-alone credit assessment, reflected in a deterioration in the financial performance and capitalization of the group's non-life business. However, we balance this weaker assessment against the benefit of Sanlam Kenya's ownership by South Africa-based Sanlam Ltd. (Sanlam; national long-term rating AA+(zaf)/stable). Sanlam Life's ratings are driven by Fitch's assessment of the Sanlam Kenya group, in line with its group rating methodology,” the agency said in a press release.

The RWN reflects added risks to Sanlam Kenya's ratings if weak fundamentals continue with material uncertainty about the effectiveness of the insurer's remedial plans, Fitch said.

“We will resolve the RWN once we have concluded further analysis of the 2021 annual results and subsequent developments and their implications for Sanlam Kenya's credit profile,” the agency said.

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