Underwriting firm, Law Union & Rock Insurance Plc has received a rating upgrade from BBB+ to A- with stable outlook, implying high claims paying ability relative to other issuers or obligations in Nigeria.
This rating reflects Law Union’s strong risk adjusted capitalization, underpinned by a sizeable capital base catering for the quantum of insurance and market risk exposures.
It also means that the company’s capitalization is likely to remain within a strong range over the rating horizon, supported by sound internal capital generation.
GCR also confirm the company’s strong liquidity profile with adequate claims cash coverage underpinned by sound operating cash-flow generation. According to the rating Agency Law Union’s earnings capacity is expected to remain within a sound range. This upward rating grade of the company also confirms its sustainable underwriting profitability with strong level of liquidity and solvency margin. Jide Orimolade, managing director of the Company, who was delighted with the new feat recorded by the company gave the credit resolute to the commitment of the staff to improved service delivery rendering to their esteemed customers.
He stated that in 2015, N1.64billion was paid on claims while over N1.2billion have been paid on various claims settlement as at third quarter of this year.
“Our unwavering commitment to customers’ course has contributed to the high customer retention so far”.
According to Orimolade, the upgrade movement rating of the company confirms our financial stability and claim paying ability on various risks we undertake. He also confirmed that the team work enjoyed among its staff contributed significantly to the improved service delivery which has engendered her esteemed customers to keep faith with us. This upgraded rating would rather motivate us to keep doing more in serving our teaming customers without compromising our shareholders’ expectation said Orimolade.
Looking into the future, Law union and Rock has embarked on various strategic initiatives since the beginning of this year to reposition the company toward improved profitability, service delivery and customer satisfaction.
These include opening of new branch at Victoria Island, restructuring of claim processing, and development of tailored products, improved branch network efficiency and distribution of their retails products through digital/online media.
