Agusto & Co. Assigns “Bbb-” Ratings with Stable Outlook to Universal Insurance

Agusto & Co. has assigned a “Bbb-” long-term rating to Universal Insurance Plc, reflecting the company’s long operating history, improved profitability, low loss ratio, moderate liquidity position and effective deployment of digital initiatives.

The rating agency noted that Universal Insurance ability to maintain a solvency margin of 184.9 per cent, well above Agusto & Co.’s minimum threshold of 100 per cent, indicates a strong capacity to support its underwriting activities.

The strong growth according to Agusto was driven by initiatives aimed at deepening relationships with customers and insurance brokers, alongside improvements in customer experience through digital platforms.

“Operating cash flow strengthened significantly in 2024, rising 98.4 per cent to N3.1 billion, supported by higher premium collections and reinsurance recoveries. This covered liabilities for incurred claims 1.5 times, outperforming the industry average. However, liquidity metrics remained broadly stable due to an increase in estimated claims liabilities.

“Improved underwriting performance and favourable portfolio valuations helped drive profit before tax to N2.1 billion, up sharply from N526.7 million in 2023. Pre-tax return on assets and equity improved to 11.4 per cent and 17.4 per cent, respectively, although both remained below industry averages. Claims payments in early 2025 moderated performance, but expected reinsurance recoveries are projected to support a rebound in profitability for the full year,” it said.

In his comments, the Managing Director/ CEO of Universal Insurance, Dr. Jeff Duru, said, “We acknowledge the recent “Bbb-” credit rating assigned to our company. It is indeed a reflection of hard work and the current macroeconomic environment and the ongoing investments we are making to support long-term growth and resilience.