Agusto & Co, a reputable rating agency, has upgraded the long-term credit rating of Mutual Benefits Assurance Plc from BBB+ to A-, acknowledging enhancements in the insurer's financial performance, capitalisation, and underwriting operations. This development was announced on September 23, 2026, following a thorough assessment of the company's financial standing. The upgraded rating reflects Mutual Benefits' robust capacity to meet its obligations relative to other insurers operating in Nigeria.
The rating agency attributed the upgrade to Mutual Benefits' sound capitalisation, improved profitability, good liquidity profile, extensive retail distribution network, and experienced management team. As of December 31, 2025, the company's shareholders' funds stood at ₦33.9 billion, representing a 41.8 percent year-on-year increase driven largely by reserve accretion from improved profitability. This significant growth in shareholders' funds underscores the company's strengthened financial position.
Mutual Benefits' solvency margin, a critical indicator of its financial health, stood at 512 percent, substantially above Agusto & Co.'s 100 percent benchmark. This indicates a considerable capital buffer relative to its obligations, providing a cushion against potential risks. Furthermore, the company's net admissible assets stood at ₦30.3 billion, more than twice the ₦15 billion regulatory minimum for non-life insurers under the Nigerian Insurance Industry Reform Act 2025.
The insurer's underwriting performance also exhibited notable improvements during the year. Gross written premiums increased by 26.7 percent to ₦52.7 billion, with motor insurance remaining the largest segment, accounting for 34.4 percent of the company's underwriting portfolio. Additionally, net claims declined by 6.3 percent, while the average loss ratio improved to 23 percent, below the estimated 27.4 percent industry average for Nigeria's non-life insurance sector.
Femi Asenuga, Managing Director and Chief Executive Officer of Mutual Benefits Assurance, expressed his satisfaction with the upgraded rating, citing it as a recognition of the company's stronger capital position, improved underwriting performance, and disciplined execution. He emphasised that the rating would help strengthen confidence among policyholders, shareholders, brokers, and other stakeholders. Asenuga also outlined the company's commitment to prudent risk management, service delivery, innovation, and responsible growth.
Agusto & Co also assigned Mutual Benefits Assurance a short-term rating of A1 with a stable outlook. The ratings, issued on August 24, 2026, are valid until June 30, 2027. The rating agency expects continued growth in Mutual Benefits' underwriting activities, alongside a moderation in currency-related valuation swings, to support profitability in the near term. This positive outlook suggests a promising future for the company.
The upgraded rating is a significant milestone for Mutual Benefits Assurance, reflecting its commitment to maintaining a strong financial position and delivering excellent services to its customers. With a strengthened capital position and improved underwriting performance, the company is well-positioned to navigate the competitive insurance landscape in Nigeria. Key stakeholders, including policyholders and shareholders, can expect continued growth and stability from the company.
Key points
- Agusto & Co upgrades Mutual Benefits Assurance's long-term credit rating to A- due to improved financial performance and capitalisation.
- Mutual Benefits Assurance's shareholders' funds rose 41.8 percent to ₦33.9bn as of December 31, 2025.
- The company's solvency margin stood at 512 percent, well above Agusto & Co.'s 100 percent benchmark.
