Agusto & Co. affirms the ‘Bbb’ rating assigned to Consolidated Hallmark Insurance Plc.
The rating expires on 30 June 2021.
The rating assigned to Consolidated Hallmark Insurance Plc (“CHI” or “the Insurer”) reflects its experienced management team, good shareholders’ support as demonstrated by the recent rights issue exercise and improved liquidity profile. However, the rating is negated by the Insurer’s rising business acquisition costs elicited by the dominance of broker originated transactions. The rating is also impacted by the fragile macroeconomic environment, compounded by the adverse impact of the COVID-19 pandemic, which moderates our outlook for the Insurer and the Nigerian Insurance Industry in general.
Agusto & Co. have attached a stable outlook to the rating of Consolidated Hallmark Insurance Plc. We will monitor the Insurer’s performance to reassess the impact of the pandemic on the assigned rating and outlook in the short term.
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