Rating Release

Agusto & Co. affirms the “A+” rating and stable outlook assigned to Zenith General Insurance Company Limited

The rating expires on 30 June 2022.

Agusto & Co. affirms the ‘A+’ rating assigned to Zenith General Insurance Company Limited (“ZGIC” or “the Underwriter” or “the Insurer”). The rating reflects the Insurer’s strong capital base, good liquidity profile with a strong pool of low-risk government instruments and a conservative risk management framework that continues to support underwriting profits despite the fragile macroeconomic climate. The Insurer’s rating is also supported by its affiliation with Zenith Bank Plc, Nigeria’s second-largest bank by total assets and contingents.

With over 360 branches nationwide, Zenith Bank provides a bancassurance distribution channel for ZGIC’s products. Nonetheless, the rating is constrained by the Insurer’s high underwriting costs elicited by an ongoing expansion of the retail clientele base and a broker driven business. In addition, the high turnover at the executive level in FY 2020 constrains the assigned rating as, we view this as a threat to the Insurer’s strategy. Furthermore, Nigeria’s slowly recovering economy constrains the rating assigned to the Insurer.