Agusto and Co. has upgraded the long-term credit rating of Mutual Benefits Assurance Plc from ‘Bbb+’ to ‘A-‘, with a stable outlook in a major endorsement of the company’s strengthened financial position, robust capitalisation, improved underwriting performance and growing profitability, the Managing Director/CEO, Mutual Benefits Assurance Plc, Femi Asenuga has said.
Asenuga in a statement said the reputable rating agency also assigned the company a short-term rating of ‘A1’, with a stable outlook. The ratings, issued on 24 August 2026, are valid through 30 June 2027.
He said: ‘According to Agusto and 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.’
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’.
He maintained that a leading Nigerian insurance company with over three decades of operating experience, Mutual Benefits recorded substantial improvements in its capital and solvency position as of 31 December 2025.
‘The company’s shareholders’ fund increased by 41.8per cent year-on-year to N33.9 billion, driven by reserve accretion arising from improved profitability while 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 512per cent, significantly above Agusto and Co.’s 100per cent benchmark. Meanwhile, its investment portfolio grew by 30.5 per cent to N51.4 billion, with liquid assets accounting for 68.2 per cent of the portfolio, supporting the company’s ability to meet claims obligations and maintain financial flexibility.
‘Equally important, Mutual Benefits recorded strong growth in its underwriting operations during the financial year ended 31 December 2025. Gross written premiums increased by 26.7per cent year-on-year to ?52.7 billion, with motor insurance remaining the company’s largest underwriting segment, accounting for 34.4per cent of its portfolio. Net claims declined by 6.3per cent, while the average loss ratio improved to 23per cent, compared with an estimated industry average of 27.4per cent for Nigeria’s non-life insurance sector.
‘The upgrade of Mutual Benefits Assurance Plc’s long-term credit rating from ‘Bbb+’ to ‘A-‘ by Agusto and Co. is a significant milestone in our journey and a strong recognition of the financial resilience and disciplined execution that underpin our business. It reinforces the strength of our capital position, the progress we have made in improving our underwriting performance and our ability to deliver sustainable value in a dynamic operating environment.
‘More importantly, this recognition strengthens the confidence we seek to inspire among our policyholders who entrust us with the protection of their assets, businesses and aspirations. It also provides an important signal to our shareholders, brokers, partners and other stakeholders that Mutual Benefits is building a stronger, more resilient and sustainably competitive institution,’ he added.