GCR rates Custodian Life Assurance ‘A-’

Global Credit Rating Company, an emerging markets-focused ratings agency, has rated Custodian Life Assurance A-, which is indicative of strong financial security.

The Custodian and Allied Plc subsidiary said in a statement on Wednesday that the rating “has immediately given credence with CLA’s shareholders’ fund growth of 36 per cent to N4.3bn at full-year end 2014, corresponding to an improved shareholders’ funds/NWP ratio of 156 per cent (FYE 13: 139 per cent).

In assigning the A- rating to the company, GCR disclosed that Custodian Life Assurance Limited “has evidenced robust capital growth over the review period, underpinned by strong internal capital generation capacity,” the statement said.

Furthermore, the statement said GCR had explained that cognisance was taken of the sound operating performance reflected by the company, with net surpluses recorded throughout the review period.

“Earnings capacity has benefitted from the favourable commission recovery rates recorded over the past two years, while increasing cost efficiencies are expected to preserve margin strength over the rating horizon,” it added.

GCR was quoted in the statement as saying, “The rating is supported by Custodian Life’s established position in the emerging domestic life assurance market. Further, the insurer is a wholly owned subsidiary of Custodian and Allied Plc, a well-established brand in the Nigerian insurance industry.”

In his reaction to the rating, the Managing Director, Custodian Life Assurance Limited, Mr. Larry Ademeso, said it was satisfactory.

He was quoted as saying that the rating meant that the vision, contributions and commitment running through the company’s Board to the staff and service delivery was beginning to receive deserved recognition from reputed agencies.

Ademeso explained that the uniqueness of CLA’s service delivery was in its ability to provide the market with fast, efficient and highly professional market-driven services, products and operations, adding that the company would continue to aim for higher feats.

According to the statement, the company’s primary activity is the provision of life insurance associated with death, disability and health liability.

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