Tuesday, 12 August 2014

A.M. Best Unveils Nigerian Insurers' New Ratings

By Sola Alabadan

A.M. Best Company, the world's oldest and most authoritative insurance rating agency has unveiled the latest Financial Strength Rating (FSR) and Issuer Credit Rating (ICR) of the four Nigerian based insurance outfits rated by the organisation.

In the latest edition of A.M. Best Non-US Ratings Monitor, the organisation assigned to African Reinsurance Corporation A- Positive (FSR) a- Positive (ICR), Continental Reinsurance Plc got B+ Stable (FSR) bbb- Stable (ICR), Custodian and Allied Insurance Plc got B Stable (FSR) bb Stable (ICR) and Mansard Insurance Plc was assigned B Stable (FSR) bb+ Stable (ICR). The credit ratings became effective on August 1, 2014.

Before now, the rating agency assigned to African Reinsurance Corporation A- Stable (FSR) a- Stable (ICR), while the remaining three insurance outfits retain their previous ratings.

Associate Director, Market Development and Communications, A.M. Best -Europe, the Middle East and Africa (EMEA), Dr. Edem Kuenyehia, says the FSR indicates an insurer's financial strength and ability to meet its ongoing insurance policy and contract obligations, while the ICR specifies an insurer's financial strength and ability to meet its ongoing senior financial obligations.

The rating agency explained that the FSR of African Reinsurance Corporation was A- Positive, meaning that the company has an excellent ability to meet its ongoing insurance obligations. Its ICR which was a- Positive also confirmed that the company has an excellent ability to meet their ongoing senior financial obligations. The positivity indicates possible rating upgrade due to favourable financial/market trends relative to the current rating level.

Source: Daily Independent

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