Agusto & Co. affirms the “A+” rating and stable outlook assigned to Zenith General Insurance Company Limited
The rating expires on 30 June 2021.
The rating assigned to Zenith General Insurance Company Limited (“ZGIC” or “the Insurer”) reflects its strong capital base, strong liquidity profile with most investments in low risk government instruments and a conservative risk management framework that continues to uphold underwriting profits despite the fragile macroeconomic climate.
The assigned rating also reflects the Underwriter’s affiliation with Zenith Bank Plc, Nigeria’s second-largest bank by total assets and contingents, which supports its underwriting business through the bancassurance distribution channel. However, the rating is constrained by ZGIC’s high underwriting costs elicited by its retail expansion and a broker driven business. Furthermore, the novel COVID 19 pandemic which elicited lockdowns in major cities in Nigeria- affecting businesses and individuals, is expected to moderate the Underwriter’s growth ambitions in the short term.
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