Rating Release
Agusto & Co. assigns a ‘Bbb(NGR)’ and a ‘Bbb(GHA)’ rating to Coronation Insurance Plc, with a stable outlook.
The rating expires on 30 June 2022.
Agusto & Co. hereby assigns a ‘Bbb(NGR)’ and a ‘Bbb(GHA)’ rating to Coronation Insurance Plc (‘the Group’) which includes the non-life business in Nigeria and Ghana, and the life business in Nigeria. The ratings assigned are hinged on the good solvency level, membership of a financial services group and experienced management team. However, offsetting these positive rating factors are the subpar profitability relative to the industry standard and high level of expense ratio, and specifically for the Parent (the non-life business in Nigeria), its related party concentration in the investment portfolio. The impact of the COVID-19 pandemic on the insurance industry in Nigeria and Ghana in addition to the prevailing macroeconomic headwinds in both countries further moderate the rating and our outlook for the Group.
