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Agusto & Co. assigns an “Bbb” rating to Consolidated Hallmark Insurance Plc

Rating Release

Agusto & Co. assigns an “Bbb” rating to Consolidated Hallmark Insurance Plc

The rating expires on 30 June 2020.

The rating assigned to Consolidated Hallmark Insurance Plc (“CHI” or “the underwriter”) reflects good investment returns during the period, moderate exposure to underwriting risks and an experienced management team. Over the last two years, CHI successfully raised over ₦1.2 billion through a combination of a rights issue and a private placement which were both fully subscribed, reflecting good shareholders’ support and a stronger capital base. However, these are offset by the underwriter’s weak profitability profile and a volatile Nigerian economy, characterised by low growth prospects.

Agusto & Co’s rating does not consider the new capital requirement imposed by the regulator which becomes effective on June 2020. We have assessed the strength of CHI’s capital vis a vis its current business risk.

This Rating Release is transmitted to you for the sole purpose of dissemination through your newspaper / magazine / agency. The rating release may be used by you in full or in part without changing the meaning or context thereof but with due credit to Agusto & Co.

This Rating Release is transmitted to you for the sole purpose of dissemination through your newspaper / magazine / agency. The rating release may be used by you in full or in part without changing the meaning or context thereof but with due credit to Agusto & Co.