A.M. Best reaffirms Nigerian insurers’ ratings

A.M. Best Company has reaffirmed the Financial Strength Rating (FSR) and Issuer Credit Rating (ICR) of the four Nigerian based insurance outfits rated by the organisation.

In the latest edition of its Non-US Ratings Monitor, the world’s most authoritative insurance rating agency restated that the ratings assigned to the insurance outfits last month remain unchanged.

The agency assigned to African Reinsurance Corporation A- Positive (FSR) a- Positive (ICR), Continental Reinsurance Plc got B+ Stable (FSR) bbb- Stable (ICR), Custodian and Allied Insurance Plc got B Stable (FSR) bb Stable (ICR) and Mansard Insurance Plc was assigned B Stable (FSR) bb+ Stable (ICR). The credit ratings became effective on September 1, 2014.

The rating agency explained that the FSR of African Reinsurance Corporation was A- Positive, meaning that the company has an excellent ability to meet its ongoing insurance obligations. Its ICR which was a- Positive also confirmed that the company has an excellent ability to meet their ongoing senior financial obligations.

For Continental Reinsurance Plc, it was B+ Stable (FSR) and bbb- Stable (ICR), indicating that the company has a good ability to meet their ongoing insurance obligations, as well as a good ability to meet its ongoing senior financial obligations respectively.

A.M. Best pointed out that in the case of Custodian and Allied Insurance Plc; it was B Stable (FSR) which means that while the company has a fair ability to meet its ongoing insurance obligations, the financial strength is vulnerable to adverse changes in underwriting and economic conditions. Its Issuer Credit Rating which was bb Stable also confirmed that while the company has a fair ability to meet its ongoing senior financial obligations, the financial strength is equally vulnerable to adverse changes in underwriting and economic conditions.

Mansard Insurance Plc was assigned B Stable (FSR) and bb+ Stable (ICR) which means the company also has a fair ability to meet its ongoing insurance obligations and that the financial strength is vulnerable to adverse changes in underwriting and economic conditions.

Source : Independent

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