Rating Release

Agusto & Co. assigns an ‘A-’ rating assigned to Sanlam General Insurance Nigeria Limited, with a stable outlook

The rating expires on 30 June 2024.

Agusto & Co hereby assigns an ‘A-’ rating to Sanlam General Insurance Nigeria Limited (“Sanlam General” or “the Company” or “the Insurer”) reflecting its good capitalisation, improving profitability, and experienced management team. The rating also considers its strong parental support from the Sanlam Group (the Group), one of Africa’s largest financial services groups of over a century’s experience in insurance, pension, and asset management. The Group has a local currency rating of Aa+, issued by FitchRatings. As at 31 December 2022, Sanlam Group’s total asset base stood at R1 trillion ((US$61.4 billion @R16.3/$1), with a presence in 31 countries. In addition to distributing the Insurer’s various products, affiliation with the Group provides technical, operational, capital, and governance support. However, the rating is constrained by the challenging macroeconomic environment, which erodes consumer purchasing power and elevates claims, the Insurer’s low market share in the Nigerian market, operating costs, and underwriting expenses.