Agusto & Co., a leading rating agency, has upgraded the long-term credit rating of Mutual Benefits Assurance Plc from 'BBB+' to 'A-', effective August 24, 2026. The upgrade is attributed to the company's stronger financial performance, improved underwriting, and robust capitalisation. Mutual Benefits was also assigned a short-term rating of 'A1' with a stable outlook, valid through June 30, 2027.
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. The 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 December 31, 2025. The company's shareholders' funds increased by 41.8% year-on-year to N33.9 billion, driven by reserve accretion arising from improved profitability.
The company's solvency margin stood at 512%, significantly above Agusto & Co.'s 100% benchmark. Its investment portfolio grew 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.
Mutual Benefits recorded strong growth in its underwriting operations during the financial year ended December 31, 2025. Gross written premiums increased by 26.7% year-on-year to N52.7 billion, with motor insurance remaining the company's largest underwriting segment, accounting for 34.4% of its portfolio.
The company's Managing Director/CEO, Femi Asenuga, stated that the upgrade is a significant milestone in the company's journey, recognising its financial resilience and disciplined execution. Asenuga added that the recognition reinforces the company's commitment to disciplined underwriting, customer-centric service delivery, operational efficiency, and sustainable long-term growth.
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. The rating agency's assessment underscores Mutual Benefits' strengthened financial position and ongoing efforts to build a resilient, competitive, and customer-focused insurance business.
Key points
- Mutual Benefits Assurance Plc's long-term credit rating was upgraded from 'BBB+' to 'A-' by Agusto & Co.
- The upgrade is attributed to the company's stronger financial performance, improved underwriting, and robust capitalisation.
- Mutual Benefits recorded a 26.7% year-on-year growth in gross written premiums to N52.7 billion in the financial year ended December 31, 2025.
