Goldstar Insurance reaffirms financial strength with AA rating from Global Credit Ratings
Goldstar Insurance Company Limited, a leading insurance provider in Uganda, recently solidified its position as one of the nation’s most reliable and financially sound insurers by maintaining its national financial strength rating of AA (UG) with a Stable Outlook from GCR Ratings (Global Credit Ratings), a prominent credit rating agency affiliated with Moody’s.
This reaffirmation underscores Goldstar Insurance’s robust capital base, consistent liquidity, and disciplined risk management practices, solidifying its ability to meet its obligations, particularly in the timely settlement of claims. The AA(UG) rating is widely considered a strong indicator of an insurer’s financial health and stability.
According to GCR’s latest review, Goldstar Insurance ended the 2024 financial year with a substantial capital base of UGX 41.3 billion, demonstrating a strong capital adequacy ratio of 4.0 times, significantly exceeding the regulatory minimum. Furthermore, the company maintained a liquidity coverage ratio of 3.0 times, showcasing its capacity to comfortably meet its short-term obligations.
Despite experiencing increased claims in specific business lines, Goldstar Insurance achieved a competitive combined ratio of 88.1 percent and an impressive return on revenue of 23.2 percent. The company also reported a significant 32.3 percent increase in insurance revenue, driven by continued growth in key segments such as motor and aviation.
GCR emphasized that these strong financial fundamentals reinforce Goldstar Insurance’s ability to absorb economic shocks and consistently maintain its reliable track record of claims settlement and earnings consistency.
Celebrating over 30 years of service in Uganda, Goldstar Insurance believes this reaffirmed rating reflects its long-standing commitment to upholding sound business practices, transparency, and prioritizing customer protection.
Jay Sakaria, Chief Actuary at Goldstar Insurance, welcomed the rating as a critical reflection of the company’s financial health and resilience. “A strong credit rating is a vital measure of an insurer’s financial health and stability. The reaffirmation of Goldstar Insurance’s AA(UG) rating by GCR reflects our disciplined capital management, robust liquidity position, and consistent earnings performance,” he stated.
He further added, “This rating is not just a mark of our past achievements; it is a forward-looking assurance to our policyholders, brokers, and business partners that Goldstar Insurance is well-positioned to meet its obligations, even in times of uncertainty. It speaks to our resilience, our commitment to long-term value, and the confidence stakeholders can place in us.”
Sakaria reaffirmed that the AA rating should be seen as a long-term assurance to all stakeholders that Goldstar Insurance remains well-equipped to meet its obligations, even during periods of economic volatility. By maintaining this strong rating, Goldstar Insurance continues to inspire confidence in its financial stability and unwavering commitment to its policyholders.
