Our sound capital structure

Powerful shareholder
Guardrisk is owned by Alexander Forbes, which is listed on the JSE Securities Exchange South Africa and has been ranked as one of the top 10 firms of its kind in the world.

How the "A" and "L" shares work
Blocks of "A" (for short-term) or "L" (for life) ordinary shares of R1 each are issued from time to time to parties placing insurance business with Guardrisk. Each block is made up of 100 shares comprising a different class of shares carrying a dividend entitlement related to the insurance business of that particular cell.

On joining Guardrisk, a client is issued a portion normally 25 of these with the balance retained for later issue, if necessary.

Maintaining solvency
The shares issued to clients, together with a suitable level of share premium, provide the capacity to write business, thus maintaining the necessary level of solvency. The issued capital, share premium and retained earnings comprise the solvency for the related insurance business.

The required solvency margin for cell owners is 25% in the short-term company and a capital adequacy ratio of 1.5x in the life company. However, Guardrisk can support the development of solvency in a user-friendly and practical manner. Later as retained income and reserves increase shareholders funds growth in premiums can be achieved without increasing the share capital.

Financial rating
Guardrisk Insurance has had its "AA" domestic claims paying ability rating reaffirmed annually since 1998 by Global Credit Rating Co.

Guardrisk Life was awarded an "A+" financing strength rating by Global Credit Rating Co in 2003. The newly introduced financial strength rating is an internationally accepted concept and offers an opinion of the financial security characteristics of a South African Life assurance company.