Agusto & 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 & 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% year-on-year to ₦33.9 billion, driven by reserve accretion arising from improved profitability. Net admissible assets stood at ₦30.3 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 512%, significantly above Agusto & Co.’s 100% benchmark. Meanwhile, its investment portfolio grew by 30.5% to ₦51.4 billion, with liquid assets accounting for 68.2% 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% year-on-year to ₦52.7 billion, with motor insurance remaining the company’s largest underwriting segment, accounting for 34.4% of its portfolio.
Net claims declined by 6.3%, while the average loss ratio improved to 23%, compared with an estimated industry average of 27.4% 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 & 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.”
Asenuga added that the recognition reinforces the company’s commitment to disciplined underwriting, customer-centric service delivery, operational efficiency and sustainable long-term growth.
Agusto & 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.
