GCR Ratings, one of Africa’s foremost rating agencies, has revised Leadway Assurance Company Limited’s financial stability rating to AA+(NG) from AA(NG) in their June 2023 Report.
Leadway Assurance made this known in a statement.
The company stated that the upgraded rating reflects Leadway Assurance’s consistent capacity to meet its financial commitments and obligations, affirming the robust creditworthiness of the insurer.The upgrade also indicates the insurers’ stable outlook.
The statement read that according to the rating agency, the outlook is underpinned by the leading insurer’s total premium collection of N104.4 billion of which Gross Written Premium (GWP) growth rate at 31 per cent was N92.5 billion or $218.6 million at N423.3/$ as of the financial year that ended December 31, 2022, largely driven by its expansion strategies in its general and life business segments.
It further stated: “In addition, Leadway’s capital base of N81.2 billion or $181 million at N448.6/$ as of December 31, 2022, supported a GCR Capital Adequacy Ratio (GCR CAR) of above 2x. Similarly, the insurer’s regulatory solvency margin ratio was strong at 7x (2021: 10x) in the same year.’’
”This growth translated to a market share of about 12 per cent of the Nigerian insurance industry’s GWP. The insurer’s GWP is concentrated in the annuity, group life, and special risks business lines, which contributed 29.5 per cent, 20.3 per cent, and 18.2 per cent to GWP, in 2022, although concentration to the annuity business is higher at 42.2 per cent of Net Written Premiums (NWP).”
Consequently, GCR projected Leadway’s continued leadership in the Nigerian insurance industry: “Over the next 12-18 months, we expect Leadway’s leadership position in the Nigerian insurance industry to be sustained, supported by its wide distribution network and expansion initiatives, especially in the retail segment.”
Managing Director/Chief Executive Officer, Leadway Assurance, Tunde Hassan-Odukale, said: “We are delighted to receive the upgraded ‘AA+’ rating from Global Credit Rating (GCR), validating our company’s strong capitalisation, prudent risk management practices, exceptional underwriting performance, and unwavering dedication to sustaining a robust financial foundation to consistently deliver outstanding value and excellent services to our policyholders and stakeholders.
“Over the last five decades, Leadway has demonstrated resilience and adaptability to navigate through dynamic market conditions while maintaining financial solidity and credibility in fulfilling its obligations to diverse policyholders. The “AA+” rating from GCR further reaffirms Leadway Assurance’s ability to weather uncertainties and maintain stability even in challenging economic environments.”