Agusto & Co., a reputable rating agency, has upgraded the long-term credit rating of Mutual Benefits Assurance Plc from 'Bbb+' to 'A-', with a stable outlook. This upgrade reflects the company's strengthened financial position, robust capitalisation, improved underwriting performance, and growing profitability. The Managing Director/CEO of Mutual Benefits Assurance Plc, Femi Asenuga, announced this development, highlighting the company's progress.
The ratings, issued on 24 August 2026, are valid through 30 June 2027. Agusto & Co. also assigned Mutual Benefits a short-term rating of 'A1', with a stable outlook. According to Agusto & Co., the upgrade reflects Mutual Benefits' good financial condition and strong capacity to meet its obligations relative to other insurers operating in Nigeria. This assessment was supported by the company's sound capitalisation, improved profitability, good liquidity profile, strong retail distribution network, and experienced management team.
Mutual Benefits Assurance Plc, a leading Nigerian insurance company with over three decades of operating experience, recorded substantial improvements in its capital and solvency position as of 31 December 2025. The company's shareholders' fund increased by 41.8% year-on-year to N33.9 billion, driven by reserve accretion arising from improved profitability. Additionally, net admissible assets stood at N30.3 billion, exceeding the stated ₦15 billion regulatory minimum for non-life underwriters under the Nigerian Insurance Industry Reform Act 2025.
The company's solvency margin stood at 512%, significantly above Agusto & Co.'s 100% benchmark. Meanwhile, its investment portfolio grew by 30.5% to N51.4 billion, with liquid assets accounting for 68.2% of the portfolio, supporting the company's ability to meet claims obligations and maintain financial flexibility. This strong financial position has enabled Mutual Benefits to build a resilient, competitive, and customer-focused insurance business.
Mutual Benefits recorded strong growth in its underwriting operations during the financial year ended 31 December 2025. Gross written premiums increased by 26.7% year-on-year to ₦52.7 billion, with motor insurance remaining the company's largest underwriting segment, accounting for 34.4% of its portfolio. Net claims declined by 6.3%, while the average loss ratio improved to 23%, compared with an estimated industry average of 27.4% for Nigeria's non-life insurance sector.
Femi Asenuga emphasised that the upgrade of Mutual Benefits Assurance Plc's long-term credit rating from 'Bbb+' to 'A-' is a significant milestone in the company's journey, recognising its financial resilience and disciplined execution. He added that this recognition strengthens the confidence among policyholders, shareholders, brokers, partners, and other stakeholders that Mutual Benefits is building a stronger, more resilient, and sustainably competitive institution.
The upgrade represents a significant recognition of Mutual Benefits' strengthened financial position and ongoing efforts to build a resilient, competitive, and customer-focused insurance business. Asenuga expressed confidence that this recognition will inspire confidence among policyholders and provide an important signal to shareholders, brokers, partners, and other stakeholders about Mutual Benefits' commitment to delivering sustainable value in a dynamic operating environment.
Key points
- Agusto & Co. upgrades Mutual Benefits Assurance Plc's long-term credit rating from 'Bbb+' to 'A-'.
- The upgrade reflects Mutual Benefits' improved financial position, robust capitalisation, and growing profitability.
- Mutual Benefits recorded a 41.8% increase in shareholders' fund to N33.9 billion and a 30.5% growth in investment portfolio to N51.4 billion.
