Credit rating agency Agusto & Co. has upgraded the long-term credit rating of Mutual Benefits Assurance Plc from ‘BBB+’ to ‘A-’, citing stronger financial performance, improved underwriting results and a solid capital position.
The agency also assigned the insurer a short-term rating of ‘A1’ with a stable outlook. The ratings, issued on August 24, 2026, are valid until June 30, 2027.
Agusto & Co. said the upgrade reflected Mutual Benefits’ sound financial condition and strong capacity to meet its obligations relative to other insurers in the Nigerian market.
The assessment was supported by the company’s improved profitability, strong capitalisation, healthy liquidity position, extensive retail distribution network and experienced management team.
Capital position strengthens
Mutual Benefits recorded significant improvements in its capital and solvency position as of December 31, 2025.
Shareholders’ funds rose by 41.8 per cent year-on-year to N33.9bn, supported by reserve growth arising from improved profitability.
Net admissible assets stood at N30.3bn, more than double the N15bn regulatory minimum for non-life insurers under the Nigerian Insurance Industry Reform Act 2025.
The company’s solvency margin reached 512 per cent, substantially above Agusto & Co.’s 100 per cent benchmark.
Its investment portfolio also expanded by 30.5 per cent to N51.4bn, with liquid assets accounting for 68.2 per cent of the portfolio.
The rating agency said the strong liquidity position provided additional support for the insurer’s ability to meet claims obligations and maintain financial flexibility.
Underwriting performance improves
Mutual Benefits also recorded strong growth in its underwriting business during the financial year ended December 31, 2025.
Gross written premiums increased by 26.7 per cent to N52.7bn, with motor insurance remaining the largest contributor, accounting for 34.4 per cent of the company’s underwriting portfolio.
At the same time, net claims declined by 6.3 per cent, while the average loss ratio improved to 23 per cent, compared with an estimated 27.4 per cent industry average for Nigeria’s non-life insurance sector.
The combination of stronger premium generation, improved claims experience and enhanced capitalisation contributed to the rating upgrade.
CEO: Upgrade reinforces customer confidence
Commenting on the development, the Managing Director/Chief Executive Officer of Mutual Benefits Assurance, Femi Asenuga, described the upgrade as recognition of the company’s improved financial resilience and disciplined execution.
He said the new rating demonstrated progress in strengthening the insurer’s capital position and underwriting performance while positioning the company for sustainable growth.
Asenuga said the recognition was also important in reinforcing confidence among policyholders, shareholders, brokers, business partners and other stakeholders.
He added that the company would continue to focus on prudent risk management, customer service, innovation and operational efficiency.
According to him, Mutual Benefits would remain committed to strengthening its business, deepening customer trust and delivering sustainable value to stakeholders.
Outlook remains stable
Agusto & Co. expects the continued strengthening of Mutual Benefits’ underwriting operations, combined with a moderation in currency-related valuation movements, to support the insurer’s profitability in the near term.
The latest rating therefore reflects the company’s improved capital and solvency position, stronger underwriting performance and liquidity profile as it continues to expand its position in Nigeria’s insurance market.
