By Taiye Olayemi
Agusto & Co. has assigned a “Bbb-” long-term ranking with a steady outlook to Common Insurance coverage Plc, citing the corporate’s lengthy working historical past, improved profitability and sound underwriting efficiency.
The ranking company in an announcement on Monday, stated the insurer’s robust solvency place, with a margin of 184.9 per cent, nicely above its minimal threshold of 100 per cent, underscored its capability to assist underwriting actions.
Agusto & Co. famous that Common Insurance coverage recorded robust development pushed by initiatives to deepen relationships with clients and insurance coverage brokers, in addition to enhancements in buyer expertise by means of digital platforms.
In line with the company, the corporate’s shareholders’ funds stood at N13.2 billion as at Dec. 31, 2024, representing a 27 per cent year-on-year improve, supported by full revenue retention.
It added that insurance coverage income rose sharply to N13.8 billion, a 71.9 per cent improve from the earlier 12 months.
It stated, “The report acknowledged that the corporate’s reinsurance preparations had been examined in 2024 following a spike in claims from the oil and fuel section.
“Gross claims greater than doubled to N3.6 billion, however reinsurance recoveries lowered web claims by 48 per cent to N2.3 billion.
“In consequence, the common loss ratio improved by 220 foundation factors to 14.7 per cent, considerably higher than the business common of 33.1 per cent.”
The company additionally disclosed that Common Insurance coverage’s funding portfolio grew by 14.5 per cent to N10.5 billion on the finish of 2024.
Working money circulation strengthened considerably in 2024, rising by 98.4 per cent to N3.1 billion, supported by larger premium collections and reinsurance recoveries.
It stated this lined incurred claims liabilities 1.5 instances, outperforming the business common, though liquidity metrics remained broadly steady resulting from elevated estimated claims liabilities.
Agusto & Co. stated improved underwriting efficiency and beneficial portfolio valuations drove revenue earlier than tax to N2.1 billion, up 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, although each remained beneath business averages.
The company famous that whereas claims funds in early 2025 moderated efficiency, anticipated reinsurance recoveries had been projected to assist a rebound in profitability for the complete 12 months.
Based mostly on these components, Agusto & Co. assigned a steady outlook, reflecting expectations that improved underwriting self-discipline, profitable capital elevating and enhanced digital capabilities would assist the corporate’s monetary profile over the medium time period.
Commenting, Dr Jeff Duru, Managing Director of Common Insurance coverage Plc, stated, “We acknowledge the current “Bbb-” credit standing assigned to our firm.
“It’s certainly a mirrored image of onerous 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 stability sheet, enhancing working effectivity, and executing initiatives that we imagine 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 clients and staff,” Duru famous.(NAN)(www.nannews.ng)
Edited by Olawunmi Ashafa
