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

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

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.

This Rating Release is transmitted to you for the sole purpose of dissemination through your newspaper / magazine / agency. The rating release may be used by you in full or in part without changing the meaning or context thereof but with due credit to Agusto & Co.

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