Rating Release

Agusto & Co. assigns a “Aa-” rating to Sanlam Life Insurance Nigeria Limited and attaches a stable outlook.

 The rating expires on 30 June 2024.

Agusto & Co. hereby assigns a ‘Aa-’ rating to Sanlam Life Insurance Nigeria Limited (“Sanlam Life” or “the Company” or “the Insurer”) reflecting its status as Nigeria’s largest pure life insurer by gross premium income, strong profitability metrics, good liquidity profile and solvency ratio and low exposure to underwriting risks. The rating also recognises the affiliation with Sanlam Group, one of the largest financial services groups in Africa with a history dating back over a century and a niche in insurance, pension and investment management. The Sanlam Group which has a presence in 31 countries had an asset base of R1 trillion ($59.1 billion) as at 31 December 2022. The wealth of experience of Sanlam Group in the insurance business has been useful in product development, risk management, investment management and other operational activities. Nonetheless, the rating is constrained by the challenging macroeconomic terrain which is eroding consumer purchasing power, elevating claims as well as operating and underwriting costs.