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Agusto & Co. upgraded Mutual Benefits Assurance’s long-term rating from BBB+ to A-, citing stronger finances, capitalisation and underwriting performance.
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Shareholders’ funds rose 41.8 percent to ₦33.9bn, while the insurer’s solvency margin reached 512 percent.
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Gross written premiums increased 26.7 percent to ₦52.7bn as net claims fell 6.3 percent in 2025.
September 23, (THEWILL) – Agusto & Co. has upgraded the long-term credit rating of Mutual Benefits Assurance Plc from BBB+ to A-, citing improvements in the insurer’s financial performance, capitalisation and underwriting operations.
The rating agency also assigned the company a short-term rating of A1 with a stable outlook. The ratings, issued on August 24, 2026, are valid until June 30, 2027.
According to Agusto & Co., the upgrade reflects Mutual Benefits’ strong capacity to meet its obligations relative to other insurers operating in Nigeria.
Capital And Liquidity Strengthen
The rating agency said the assessment was supported by the insurer’s sound capitalisation, improved profitability, good liquidity profile, extensive retail distribution network and experienced management team.
Mutual Benefits’ shareholders’ funds rose 41.8 percent year-on-year to ₦33.9 billion as of December 31, 2025, driven largely by reserve accretion from improved profitability.
Net admissible assets stood at ₦30.3 billion, more than twice the ₦15 billion regulatory minimum for non-life insurers under the Nigerian Insurance Industry Reform Act 2025.
The company’s solvency margin stood at 512 percent, well above Agusto & Co.’s 100 percent benchmark, indicating a substantial capital buffer relative to its obligations.
Its investment portfolio also increased 30.5 percent to ₦51.4 billion, with liquid assets accounting for 68.2 percent of the portfolio.
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Underwriting Performance Improves
Mutual Benefits also recorded stronger underwriting performance during the year.
Gross written premiums increased 26.7 percent to ₦52.7 billion, with motor insurance remaining the largest segment, accounting for 34.4 percent of the company’s underwriting portfolio.
At the same time, net claims declined 6.3 percent, while the average loss ratio improved to 23 percent, below the estimated 27.4 percent industry average for Nigeria’s non-life insurance sector.
Femi Asenuga, Managing Director and Chief Executive Officer of Mutual Benefits Assurance, said the upgrade recognised the company’s stronger capital position, improved underwriting performance and disciplined execution.
He said the rating would also help strengthen confidence among policyholders, shareholders, brokers and other stakeholders.
Asenuga added that the company would remain focused on prudent risk management, service delivery, innovation and responsible growth.
Agusto & Co. expects continued growth in Mutual Benefits’ underwriting activities, alongside a moderation in currency-related valuation swings, to support profitability in the near term.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
