Mutual Benefits Assurance Plc has secured an upgrade in its long-term credit rating to ‘A-’, with the insurer’s management attributing the development to stronger capitalisation, improved underwriting performance and greater financial resilience.
The rating agency, Agusto & Co., raised the company’s long-term rating from ‘BBB+’ to ‘A-’ and assigned it a short-term rating of ‘A1’, with a stable outlook.
The ratings, issued on August 24, 2026, are valid until June 30, 2027.
The Managing Director and Chief Executive Officer of Mutual Benefits Assurance, Femi Asenuga, described the upgrade as an important milestone in the company’s growth, saying it demonstrated the impact of disciplined execution and improved financial management.
He said the rating would provide policyholders, shareholders, brokers and business partners with an additional indication of the insurer’s financial capacity and ability to maintain sustainable operations.
“The upgrade of Mutual Benefits Assurance Plc’s long-term credit rating from ‘BBB+’ to ‘A-’ by Agusto & Co. is a significant milestone in our journey and a strong recognition of the financial resilience and disciplined execution that underpin our business,” Asenuga said.
According to him, the company would continue to focus on prudent risk management, service excellence, innovation and responsible growth as part of efforts to strengthen its position in the insurance market.
The rating upgrade followed a significant improvement in the insurer’s financial position during the period under review.
Shareholders’ funds rose by 41.8 per cent to N33.9 billion as of December 31, 2025, with the increase attributed to reserve accretion arising from improved profitability.
The company’s net admissible assets also stood at N30.3 billion, more than double the N15 billion regulatory minimum applicable to non-life insurers under the Nigerian Insurance Industry Reform Act 2025.
Mutual Benefits reported a solvency margin of 512 per cent, substantially above the 100 per cent benchmark used by Agusto & Co. in its assessment.
The insurer’s investment portfolio also expanded by 30.5 per cent to N51.4 billion, while liquid assets accounted for 68.2 per cent of the portfolio, providing the company with a relatively strong liquidity position.
Underwriting performance improves
The insurer also recorded stronger underwriting performance in the financial year ended December 31, 2025.
Gross written premiums rose by 26.7 per cent to N52.7 billion, reflecting increased business volumes across its underwriting operations.
Motor insurance remained the company’s largest business segment, accounting for 34.4 per cent of its underwriting portfolio.
At the same time, net claims declined by 6.3 per cent, while the average loss ratio improved to 23 per cent.
The figure was below Agusto & Co.’s estimated average loss ratio of 27.4 per cent for Nigeria’s non-life insurance industry, pointing to an improvement in the company’s claims experience and underwriting performance.
Agusto & Co. identified several factors behind the rating action, including Mutual Benefits’ stronger capitalisation, improved profitability, healthy liquidity profile, extensive retail distribution network and experienced management team.
The rating agency also projected that continued growth in the insurer’s underwriting activities would support its financial performance in the near term.
It further expected reduced currency-related valuation fluctuations to help moderate some of the financial pressures associated with foreign-exchange movements and provide additional support to profitability.
The upgrade places Mutual Benefits Assurance among insurers with a stronger assessed capacity to meet their financial obligations, while the stable outlook indicates that Agusto & Co. expects the company’s underlying financial position to remain broadly supportive of the current rating over the rating period.