Goldstar Insurance Reaffirms Market Leadership With AA(UG) Rating From GCR

By Gad Masereka

In a testament to its enduring financial resilience and commitment to prudent management, Goldstar Insurance Company Limited has once again secured an AA(UG) national scale financial strength rating from GCR Ratings, accompanied by a Stable Outlook.

This affirmation positions Goldstar among the highest-rated insurers in Uganda, reinforcing the company’s standing as a dependable pillar in the country’s insurance sector.

The rating, published on May 12, 2025, by the pan-African credit rating agency now wholly owned by Moody’s Corporation, reflects a culmination of factors that signal robust institutional health.

Notably, Goldstar’s capital base climbed to UGX 41.3 billion in 2024, with a GCR Capital Adequacy Ratio of 4.0x well above the industry requirement. Liquidity coverage improved to 3.0x, underscoring the insurer’s capacity to meet short-term obligations without compromising operational stability.

“This rating, whose contributing factors comprise among others; financial stability, underwriting performance, claims handling, risk management and customer satisfaction, is once again a confirmation of our prudent management of the business with the customer at the centre,” said John Kawuma, CEO of Goldstar Insurance. “We are proud of this milestone and our resolve is to go to great depth to ensure stability of the business so that we can protect what is valuable to you, always.”

The company’s combined ratio—a key measure of underwriting efficiency—stood at 88.1%, while return on revenue was reported at an impressive 23.2%. These metrics, achieved despite higher claims in specific lines of business, reflect a disciplined risk culture and efficient cost controls. Growth was also evident in the company’s top-line performance, with insurance revenue expanding by 32.3%, driven by gains across the motor and aviation portfolios.

Jay Sakaria, Goldstar’s Chief Actuary, emphasized that a strong credit rating is more than just a retrospective accolade. “The reaffirmation of Goldstar Insurance’s AA(UG) rating by GCR reflects our disciplined capital management, robust liquidity position, and consistent earnings performance,” he noted. “It is a forward-looking assurance to our policyholders, brokers, and business partners that Goldstar is well-positioned to meet its obligations, even in times of uncertainty.”

For policyholders and industry observers alike, the AA(UG) rating is a vital signal. It indicates that Goldstar possesses a very strong capacity to honour its financial commitments—a crucial consideration in a market where reliability and timely claims settlement can be defining attributes.

The endorsement from GCR also arrives at a moment of institutional reflection and forward planning. With over three decades of service in Uganda, Goldstar continues to evolve within an increasingly complex and competitive landscape. Yet, even as market dynamics shift, the company’s focus on sustainable growth and operational excellence remains steady.

The credibility of the rating is further enhanced by GCR’s reputation on the continent. Originally established in 1996, the agency has since become Africa’s leading credit rating body, providing deep local insight across key financial markets.

Following its full acquisition by Moody’s in 2024, GCR now operates with expanded resources and international oversight—an evolution that lends further weight to its credit opinions.

As Uganda’s insurance industry works to broaden coverage and deepen penetration across sectors, the presence of strong, well-rated players like Goldstar will be essential. For clients, brokers, and regulators, the rating is more than symbolic—it is a tangible metric of financial reliability in an unpredictable world.

Goldstar’s leadership sees the reaffirmation not as an endpoint, but as a reaffirmation of their strategic path. “Maintaining a high credit rating remains central to our strategy of building trust and delivering on our promise of dependable protection,” Sakaria added. “It speaks to our resilience, our commitment to long-term value, and the confidence stakeholders can place in us.”

In the broader context of African financial markets, where access to accurate and locally attuned credit evaluations can shape investment and partnership decisions, the role of agencies like GCR—and the companies they rate—will continue to grow in importance. And for Goldstar Insurance, this latest recognition serves not only as a reflection of past prudence, but as a signpost pointing confidently toward the future.