Consolidated Hallmark Insurance Limited (CHI) has secured an upgraded A+(NG) financial strength rating from GCR Ratings, with a positive outlook, as a sharp turnaround in underwriting performance and stronger capitalisation bolster the insurer’s financial resilience.
The upgrade from A(NG), announced on August 31, 2026, is GCR’s first improvement in its rating of CHI since it began coverage of the insurer in August 2023.
GCR attributed the upgrade to stronger risk-adjusted capitalisation, adequate liquidity, an improving earnings profile and a significant improvement in underwriting performance.
The insurer’s combined ratio, a key measure of underwriting profitability, fell sharply from 113.5 percent in 2023 to 83.9 percent in 2024 and 78.2 percent in 2025. This compares with an industry average of 95 percent, highlighting CHI’s stronger underwriting discipline.
GCR linked the improvement to lower high-value claims, optimised reinsurance arrangements, scale efficiencies and tighter cost management.
For an industry where underwriting losses have historically eroded insurers’ earnings, the turnaround means CHI is increasingly generating stronger returns from its core insurance business rather than relying heavily on investment income.
‘The A+(NG) rating is a strong affirmation of the discipline and resilience behind our transformation,’ Mary Adeyanju, managing director/ CEO of CHI, said.
‘We have deliberately strengthened underwriting quality, risk management and reinsurance while ensuring that our growth remains supported by adequate capital and liquidity.’
The rating upgrade comes as the insurer continues to expand its business. CHI’s insurance revenue grew at a compound annual growth rate of 33.7 percent over five years to reach N41.7 billion in 2025, supported by its distribution network and intermediary relationships across eight business lines.
Related NewsIts capital position also strengthened during the period. GCR’s capital adequacy ratio rose to 2.5 times from 1.9 times, while the statutory solvency margin reached 11.9 times, significantly above the regulatory minimum of 1.0 times.
Liquidity remained robust at 2.2 times, with cash and short-term placements accounting for 54.8 percent of investments.
Adeyanju said the Positive Outlook would push the company to maintain its focus on profitable expansion rather than pursuing growth at the expense of underwriting quality.
‘Our objective is not growth for its own sake. We are focused on profitable, sustainable and responsible growth,’ she said.
GCR said any further rating improvement would depend on CHI sustaining its underwriting and competitive gains while keeping capital adequacy and liquidity above 2.2 times and 1.8 times respectively.
The rating agency projects CHI’s capital adequacy ratio to remain between 2.2 and 2.4 times over the next 12 to 18 months, while liquidity coverage is expected to stay above 2.0 times.
The outlook also takes into account the contribution expected from CHI Life Assurance Limited, the group’s relatively new, wholly owned life insurance subsidiary, as well as other diversification initiatives.
For CHI, the improved rating provides a stronger financial signal to policyholders, brokers, reinsurers and other business partners, while giving the insurer a stronger platform to compete for larger risks and pursue sustainable expansion.
Consolidated Hallmark Insurance Limited is one of the leading General Business and Special Risk Insurance underwriters in Nigeria. Over the years, the company has played a leadership role in the underwriting of key transactions in Aviation, Oil and Gas, Marine Cargo and Hull Business as well as in Motor insurance business.