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 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.
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.
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’ 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 N30.3 billion, exceeding the stated N15 billion regulatory minimum for non-life underwriters under the Nigerian Insurance Industry Reform Act 2025.
The company’s solvency margin stood at 512 percent, significantly above Agusto and Co.’s 100% benchmark. Meanwhile, its investment portfolio grew by 30.5 percent to N51.4 billion, with liquid assets accounting for 68.2 percent 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 26.7 percent year-on-year to N52.7 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.
Commenting on the rating upgrade, Femi Asenuga, managing director/CEO, Mutual Benefits Assurance Plc, said:
‘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.
‘We remain focused on prudent risk management, excellent service delivery, innovation and responsible growth. As we move forward, our commitment is to continue strengthening the business, deepening customer trust and creating lasting value for all our stakeholders.’
Agusto and 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.
In response to the evolving insurance landscape, 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.
The company’s strategic direction is anchored in delivering sustainable value to policyholders, shareholders, employees and business partners while reinforcing its position as a trusted protection partner.