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The two-level upgrade, GRC said, was on account of Goldstar's improved management and governance.
The rating upgrade also reflects the changes made to Gold Stars board composition with the aim of complying with the regulatory requirements, as well as “a slightly improved business profile assessment” thanks to the insurer's intermediate competitive position.
While announcing the milestone on Tuesday, Enock Mudadi, the Goldstar Chief Operations Officer told reporters that the new rating reflected their drive to match their services to international standards.
“Even though we are a local insurer, the expectation is that we must deliver services on globally acceptable standards. Besides, our customers are not necessarily local, some of them are multinationals working in this country, others are regional companies,” he said.
“That is why we went out to gauge ourselves on these global standards.”
The new rating, he said, stamped the company's ability to pay claims, which not many local insurance companies are not famous for.
In the GRC assessment, Goldstar was found to exhibit “a strong financial profile, characterized by very strong risk-adjusted capitalization and liquidity, while the earnings capacity assessment factors in sustained underwriting profitability and continued sound net earnings.”
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The Goldstar team
Jay Sakaria, the Goldstar Chief Actuary said the company was now embarking on educating Ugandans about important parameters such as credit ratings that they need to consider before buying insurance.
Sakaria, also revealed that while seeking credit raking is not a requirement by the Ugandan insurance regulator, they took the decision about 10 years, to undergo assessment every year.
“This is completely voluntary; we chose to do this because we know we are strong and financially stable; that is why we went down this road, just to demonstrate that we are real.”