A.M. Best Company has unveiled the latest Financial Strength Rating (FSR) and Issuer Credit Rating (ICR) of five Nigerian based insurance outfits rated by the organisation, stating that Mansard Insurance Plc’s rating is still uncertain.
In its September edition of A.M. Best Non-US Ratings Monitor, the organisation insisted that the new ratings of Mansard remain B u Developing (FSR) and bb+ u Developing (ICR) as against B u Stable (FSR) and bb+ u Stable (ICR) ratings assigned to Mansard in April.
This means that the rating is under review and that while there is uncertainty as to the final rating outcome, there is a reasonable likelihood the company’s rating will change as a result of A.M. Best’s analysis of a recent event.
The remaining four companies retained their ratings. The organisation had assigned to African Reinsurance Corporation A- Positive (FSR) a- Positive (ICR), Continental Reinsurance Plc got B+ Stable (FSR) bbb- Stable (ICR), Custodian and Allied Insurance Plc got B Stable (FSR) bb Stable (ICR) and Wapic Insurance Plc got B- Stable (FSR) bb- Stable (ICR).
Associate Director, Market Development and Communications, A.M. Best –Europe, the Middle East and Africa (EMEA), Dr. Edem Kuenyehia, says the FSR indicates an insurer’s financial strength and ability to meet its ongoing insurance policy and contract obligations.
, while the ICR specifies an insurer’s financial strength and ability to meet its ongoing senior financial obligations.
The rating agency explained that the FSR of African Reinsurance was A- Positive, meaning that the company has an excellent ability to meet its ongoing insurance obligations.
Continental Reinsurance’s B+ (Stable) means the firm has a good ability to meet its ongoing insurance obligations.
Custodian and Allied’s B (Stable) means the organisation has a fair ability to meet its ongoing insurance obligations but its financial strength is vulnerable to adverse changes in underwriting and economic conditions.
Wapic’s B- (Stable) means the company has a fair ability to meet its ongoing insurance obligations but its financial strength is vulnerable to adverse changes in underwriting and economic conditions.