Agusto & Co. has assigned a “Bbb-” long-term score to Common Insurance coverage Plc, reflecting the corporate’s lengthy working historical past, improved profitability, low loss ratio, reasonable liquidity place and efficient deployment of digital initiatives.
The score company famous that Common Insurance coverage’s capability to take care of a solvency margin of 184.9 per cent, nicely above Agusto & Co.’s minimal threshold of 100 per cent, signifies a powerful capability to assist its underwriting actions.
The robust development in keeping with Agusto was pushed by initiatives aimed toward deepening relationships with prospects and insurance coverage brokers, alongside enhancements in buyer expertise by means of digital platforms.
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It famous that as at 31 December 2024, Common Insurance coverage’s shareholders’ funds stood at N13.2 billion, representing a 27 per cent year-on-year enhance, supported by full revenue retention.
The corporate maintained a sound insurance coverage income of N13.8 billion, representing a 71.9 per cent enhance from the prior 12 months.
The corporate’s reinsurance preparations have been examined in 2024 amid a spike in claims from the oil and fuel section.
Gross claims greater than doubled to N3.6 billion, however reinsurance recoveries decreased internet claims by 48 per cent to N2.3 billion.
Because of this, the common loss ratio improved by 220 foundation factors to 14.7 per cent, considerably higher than the 33.1 per cent trade common.
It famous that the corporate’s funding portfolio grew by 14.5 per cent to N10.5 billion on the finish of 2024.
Working money move strengthened considerably in 2024, rising 98.4 per cent to N3.1 billion, supported by greater premium collections and reinsurance recoveries. This lined liabilities for incurred claims 1.5 occasions, outperforming the trade common.
Nevertheless, liquidity metrics remained broadly secure attributable to a rise in estimated claims liabilities.
Improved underwriting efficiency and beneficial portfolio valuations helped drive revenue earlier than tax to N2.1 billion, up sharply from N526.7 million in 2023. Pre-tax return on property and fairness improved to 11.4 per cent and 17.4 per cent, respectively, though each remained under trade averages.
Claims funds in early 2025 moderated efficiency, however anticipated reinsurance recoveries are projected to assist a rebound in profitability for the total 12 months.
Primarily based on these elements, Agusto & Co. assigned a secure outlook to Common Insurance coverage Plc’s scores, reflecting expectations that improved underwriting self-discipline, profitable capital elevating and enhanced digital capabilities will assist the corporate’s monetary profile over the medium time period.
Managing Director/ CEO of Common Insurance coverage Plc, Dr. Jeff Duru, stated, “We acknowledge the latest “Bbb-” credit standing assigned to our firm. It’s certainly a mirrored image of exhausting work and the present macroeconomic surroundings and the continued investments we’re making to assist long-term development and resilience.
“We’re totally centered on strengthening our steadiness sheet, enhancing working effectivity, and executing initiatives that we consider will improve the metrics of our credit score standing over time. Administration stays dedicated to sustaining clear communication with our stakeholders and to delivering sustainable worth for shareholders together with prospects and staff.”
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