Agusto & Co. affirms Consolidated Hallmark Insurance Plc’s ‘Bbb’ rating, with a stable outlook.
The rating expires on 30 June 2022.
The rating assigned to Consolidated Hallmark Insurance Plc (“CHI” or “the Insurer”) reflects its experienced management team, good shareholders’ support as demonstrated by the ₦1.1 billion raised through a rights issue exercise and good solvency ratio. However, constraining the rating is CHI’s rising underwriting costs elicited by the dominance of broker-originated transactions and its investment in low-yielding investment properties. The rating is also impacted by the weak macroeconomic fundamentals and slow economic recovery from the adverse impact of the coronavirus pandemic.