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 ratings, issued on 24 August 2026, are valid through 30 June 2027.
The upgrade was driven by Mutual Benefits' good financial condition and strong capacity to meet its obligations relative to other insurers operating in Nigeria. Agusto & Co. assessed the company's sound capitalisation, improved profitability, good liquidity profile, strong retail distribution network, and experienced management team. This recognition represents a significant milestone in Mutual Benefits' journey, reinforcing its financial resilience and disciplined execution.
As of 31 December 2025, Mutual Benefits recorded substantial improvements in its capital and solvency position. The company's shareholders' funds increased by 41.8 percent year-on-year to ₦33.9 billion, driven by reserve accretion arising from improved profitability. Net admissible assets stood at ₦30.3 billion, exceeding the stated ₦15 billion regulatory minimum for non-life underwriters under the Nigerian Insurance Industry Reform Act 2025.
Mutual Benefits' solvency margin stood at 512 percent, significantly above Agusto & Co.'s 100% benchmark. The company's investment portfolio grew by 30.5 percent to ₦51.4 billion, with liquid assets accounting for 68.2 percent of the portfolio. This supports the company's ability to meet claims obligations and maintain financial flexibility, positioning it for sustainable growth.
During the financial year ended 31 December 2025, Mutual Benefits recorded strong growth in its underwriting operations. Gross written premiums increased by 26.7 percent 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 percent, while the average loss ratio improved to 23 percent, compared with an estimated industry average of 27.4 percent for Nigeria's non-life insurance sector.
Femi Asenuga, managing director/CEO of Mutual Benefits Assurance Plc, expressed his delight with the rating upgrade, stating that it reinforces the company's commitment to disciplined underwriting, customer-centric service delivery, operational efficiency, and sustainable long-term growth. The recognition strengthens confidence among policyholders, shareholders, brokers, partners, and other stakeholders that Mutual Benefits is building a stronger, more resilient institution.
Agusto & Co. expects the continued strengthening of Mutual Benefits' underwriting activities, alongside a moderation in currency-related valuation swings, to support the company's profitability in the near term. Mutual Benefits continues to focus on strengthening its market position, deepening retail insurance penetration, improving customer experience, and leveraging digital initiatives to enhance product accessibility, claims processing, and decision-making.
Key points
- Mutual Benefits Assurance Plc's long-term credit rating was upgraded to 'A-' from 'Bbb+' by Agusto & Co.
- The upgrade reflects the company's improved financial position, robust capitalisation, and growing profitability.
- Mutual Benefits recorded a 41.8 percent increase in shareholders' funds to ₦33.9 billion as of 31 December 2025.
