Agusto & Co. has upgraded the long-term credit rating of Mutual Benefits Assurance Plc from ‘BBB+’ to ‘A-’, citing stronger financial performance, improved underwriting results and a solid capital position.
The rating agency also assigned the company a short-term rating of ‘A1’, both with stable outlooks. The ratings, issued on August 24, 2026, are valid through June 30, 2027.
According to Agusto & Co., the upgrade reflects Mutual Benefits Assurance Plc’s sound financial condition and capacity to meet its obligations relative to other insurers operating in Nigeria.
The assessment was supported by the company’s capitalisation, improved profitability, liquidity position, retail distribution network and experienced management team.
The insurer recorded significant improvements in its financial position as of December 31, 2025. Shareholders’ funds rose by 41.8 per cent year-on-year to ₦33.9 billion, driven largely by reserve accretion from improved profitability.
Net admissible assets stood at ₦30.3 billion, above the ₦15 billion regulatory minimum stated for non-life insurers under the Nigerian Insurance Industry Reform Act 2025.
The company’s solvency margin reached 512 per cent, well above Agusto & Co.’s 100 per cent benchmark, while its investment portfolio increased by 30.5 per cent to ₦51.4 billion. Liquid assets accounted for 68.2 per cent of the investment portfolio.
Mutual Benefits also recorded growth in its underwriting operations, with gross written premiums rising by 26.7 per cent to ₦52.7 billion during the 2025 financial year.
Motor insurance remained its largest underwriting segment, accounting for 34.4 per cent of the portfolio. Net claims declined by 6.3 per cent, while the average loss ratio improved to 23 per cent, compared with an estimated 27.4 per cent industry average for Nigeria’s non-life insurance sector.
Reacting to the upgrade, Managing Director and Chief Executive Officer of Mutual Benefits Assurance Plc, Femi Asenuga, described the rating as recognition of the company’s financial resilience, disciplined execution and progress in underwriting performance.
He said the company would remain focused on prudent risk management, customer service, innovation and responsible growth.
Agusto & Co. expects continued improvement in Mutual Benefits’ underwriting activities, alongside reduced currency-related valuation swings, to support profitability in the near term.
The insurer said it would also continue investing in retail insurance penetration, customer experience and digital initiatives aimed at improving product accessibility, claims processing and decision-making.
