Rating Release
Agusto & Co. affirms the ‘Bbb+’ rating assigned to Stanbic IBTC Insurance Limited, with a stable outlook
The rating expires on 30 June 2025.
Agusto & Co. affirms the ‘Bbb+’ rating assigned to Stanbic IBTC Insurance Limited (‘Stanbic IBTC Insurance‘ or ‘the Company’ or ‘the Insurer‘) reflecting support from Stanbic IBTC Holdings Plc (the HoldCo), one of Nigeria’s largest financial services groups with subsidiaries in commercial banking, investment banking, asset management, stock brokerage, trusteeship, pension fund administration and insurance brokerage. In addition to distributing the Insurer’s various products, affiliation with the HoldCo supports corporate governance, technology, risk management, human resources and investment management, among others. We also consider the Company’s good capitalisation, good cash flow and strong liquidity profile as positive rating factors. However, the rating is constrained by the Insurer’s weak profitability given the limited operating history and subpar return on investment compared to the average inflation rate. Also acting as a rating negative is the impact of the prevailing macroeconomic headwinds and the pervasive insurance apathy in Nigeria.