New National Market Update
The New National Assurance Company is the country’s oldest and largest empowered short-term insurer. We have been in existence for 43 years, and for the last 4 consecutive years we have been awarded an ‘A’(stable) rating from Global Credit Ratings for our claims paying ability.
We managed, as at 31/12/2014, R454 million worth of assets along with a Gross Premium Income of R1.1 billion and make extensive use of reinsurance arrangements to manage our risk and balance-sheet volatility – our balance sheet has benefited from minimum stresses to it and was again one of the drivers of our ‘A’ rating. The reinsurance arrangements we make use of consist primarily of a panel of the world’s leading reinsurers, who are all A-rated or higher – Munich Re, Swiss Re and on a continental level Africa Re.
Munich Re of Africa is a shareholder of our company, which it has been for over two decades. As such, it has board representation in NNAC, through Colin van der Meulen, the Chief Actuary of Munich Re of Africa. While shareholding and reinsurance relationships are necessarily kept separate, NNAC does benefit from the technical and global best-practice expertise of Munich Re.
A strong part of our business is on managing UMAs. Once we identify quality UMAs, we look to partner with them for the long-term. Despite this, it is now public knowledge that our partnership with Quicksure will be coming to an official end at the end of this month following the cancellation of their portfolio earlier in the year. Despite this, we have a strong stable of UMA portfolios which we manage – numbering over a dozen partners. Between them, they write for us domestic, commercial, corporate, marine, agricultural assets, motorbike, wildlife, accident & health, professional indemnity and broad-form liability classes – so not only is NNAC diversified in terms of its spread of UMAs, it is also diversified in the classes of business which it writes.
Our UMAs have claims settlement authority, and as such the settlement, service and payment of the claims rests in their care. NNAC tops up all claims funds twice a week. In 2014, we made cash payments of over R45million, on average, each and every week.
NNAC is also particularly proud of its strategic relationship with the AC&E Group of Companies, which is a relationship going back almost a decade. NNAC has an equity stake in AC&E Engineering Underwriting Managers and is particularly pleased that the company has been awarded, for 3 consecutive years, the Diamond Arrow Award by pmr.Africa for South Africa’s best engineering underwriter (2012-2014).