By Sola Alabadan
A.M. Best Company has once again reaffirmed the Financial Strength Rating (FSR) as well as the Issuer Credit Rating (ICR) of the four Nigerian insurance companies rated by the agency.
According to the world’s oldest and most authoritative insurance rating agency, the four Nigerian based insurance outfits rated by the organisation, retained their ratings as at May 31, 2021.
In its latest edition of A.M. Best Credit Ratings (Global), the organisation reassigned to African Reinsurance Corporation A Stable (FSR) a Stable (ICR), Continental Reinsurance Plc got B+ Stable (FSR) bbb- Stable (ICR), Custodian and Allied Insurance Plc got B Stable (FSR) bb+ Positive (ICR), and Axa Mansard Insurance Plc was assigned B+ Positive (FSR) bbb- Positive (ICR).
Director, Market Development and Communications, A.M. Best -Europe, the Middle East and Africa (EMEA), Dr. Edem Kuenyehia, stated that 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 was A, indicating that the company has an excellent ability to meet its ongoing insurance obligations.
Continental Reinsurance’s B+ means the firm has a good ability to meet its ongoing insurance obligations.
Custodian and Allied’s B means the organisation has a fair ability to meet its ongoing insurance obligations but its financial strength is vulnerable to adverse changes in underwriting and economic conditions.
Mansard’s B+ indicates the company also has a good ability to meet its ongoing insurance obligations.