The credit ratings of a leading underwriting company in Nigeria, AXA Mansard Insurance Plc, have been affirmed by a reputable rating agency, AM Best.
The ratings affirmed were the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” (Good), with the outlook stable.
AM Best explained that the ratings reflect the strength of AXA Mansard’s balance sheet, which it said was strong.
“The ratings also reflect rating enhancement, in the form of lift, from AXA Mansard’s ultimate parent, AXA S.A,” a statement from AM Best said.
“AXA Mansard’s balance sheet strength is underpinned by risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR).
“Capital consumption is primarily driven by asset risk, which incorporates the company’s substantial real estate investments,” it added.
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The rating firm said it expects prospective operating performance to be supported by corrective underwriting measures in the health portfolio, as well as positive contributions from the company’s life book, affirming that the insurance company has a solid foothold in its domestic market where it ranks among the largest non-life companies, and it enjoys a leading market position in the health segment.
“With good long-term growth prospects, AXA Mansard is expected to further strengthen its competitive market position over the coming years,” a part of the statement noted.
Commenting on the ratings, the Chief Financial Officer of Axa Mansard, Ngozi Ola-Israel, said “the affirmation of our ratings by an agency like AM Best lends credence to the significant improvement in our internal capital generation abilities with a strong focus on continuously improving our underwriting performance through technical excellence.”
Also speaking on the ratings, the Chief Executive Officer of Axa Mansard, Kunle Ahmed, said the efforts put in place by the team to build a world-class insurance company were yielding positive results.
“The affirmation of our ratings as stable and the retention of our FSR and ICR ratings despite the exposure to the high levels of economic, political and financial system risks further testify to our strong leading position and capacity to provide security for our stakeholders and ability to protect what truly matters to them,” he stated.
