Ghana Reinsurance Company (Ghana Re) is downplaying the negative implications its Issuer Credit downgrading could have on especially its external operations. A.M. Best Europe Rating Services Limited has downgraded the company in its Issuer Credit-Rating (ICR) from BB+ to BB. This was attributed to the company’s weakened business profile within its core market and reduced premium income. This is also as a result of the removal of the compulsory legal cession which obliged insurers in the country to cede 20% of their written business to Ghana Re But Acting Chief Executive, Gustav Siale tells JOY BUSINESS, Ghana-Re remains focused in its bid to enhance its external operations as a result of the removal of the legal cession. “Our focus is to make up for the loss of income that emanated from the removal of the legal session” he noted. “And one of the reasons we subjected ourselves for the rating is to win more businesses outside Ghana by giving comfort to such companies outside Ghana. So if we had improved upon the rating or even maintained, it would have helped us tremendously. However in most of these markets they already know us as a company that pays claims promptly unlike those which are even rated AA. That is why when we were not even rated, most of the markets that have rating as a pre-requisite for insurance operations, we were allowed to transact business. The company’s financial strength rating of B was however affirmed. The outlook for both ratings was also revised to stable from negative. Mr. Siale however regrets the ICR downgrading has far-reaching implications for the insurance industry as well as the economy as whole. “Already most multinationals want to take their businesses outside the country. But the law enjoins them to insure part of that in Ghana. Some of them however compel the insurance companies to replace the business-offer with a reinsurance company with AA or BB+ rating. So with Ghana-Re not AA-rated, they are invariably cut out from having access to the business opportunities. This also defeats the main objective of establishing Ghana-Re, which is to retain more of the premium income in the country for further investments” he decried.