GCR Ratings, one of Africa’s foremost rating agencies, has upgraded Leadway Assurance Company Ltd.’s financial stability rating to AA+(NG) from AA(NG) in its June 2023 report.
Managing director/chief executive officer, Leadway Assurance, Mr Tunde Hassan-Odukale, said this in a statement on Thursday in Lagos.
Hassan-Odukale stated that the upgraded rating reflected Leadway Assurance’s consistent and superior capacity to meet its financial commitments and obligations.
He explained that the upgrade affirmed the robust creditworthiness of the insurer and indicated the insurers’ stable and consistently growing outlook.
“This outlook is underpinned by the insurer’s total premium collection of N104.4 billion, of which Gross Written Premium (GWP) growth rate is at 31 per cent.
“The GWP was NGN92.5 billion ($218.6 million at NGN423.3/$) as at the year ended December 31, 2022.
“This was largely driven by its expansion strategies in its general and life business segments,” he said.
According to him, Leadway’s capital base of N81.2 billion ($181 million at NGN448.6/$) as at December 31, 2022, supported a GCR Capital Adequacy Ratio (GCR CAR) of above 2x.
The managing director noted that, similarly, the insurer’s regulatory solvency margin ratio was strong at 7x (2021: 10x) in the same year.
Hassan-Odukale said according to the report of the rating agency, this growth translated to a market share of about 12 per cent of the Nigerian insurance industry’s GWP’.
He stated that the insurer’s GWP was 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, respectively, in 2022.
According to him, the concentration to the annuity business, although was 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 to 18 months, we expect Leadway’s leadership position in the Nigerian insurance industry to be sustained.
“This should be supported by its wide distribution network and expansion initiatives, especially in the retail segment.”
“We are delighted to receive the upgraded ‘AA+’ rating from GCR, validating our company’s strong capitalisation, prudent risk management practices, exceptional underwriting performance and unwavering dedication.
“This is to sustaining a robust financial foundation to consistently deliver outstanding value and excellent services to our policyholders and stakeholders,” he said.
According to him, 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.
Hassan-Odukale noted that the AA+ rating from GCR further reaffirmed Leadway Assurance’s ability to weather uncertainties and maintain stability even in challenging economic environments.
Leadway Assurance is a leading provider of insurance solutions, offering a wide range of products and services to individuals and businesses.
GCR is a licensed rating agency in several African Capital and financial markets and also a founder member of Europe-based ARC Ratings, registered with the European Securities and Markets Authority.
