GCR Upgrades Leadway Assurance’s Financial Strength Rating to “AA”

GCR Upgrades Leadway Assurance’s Financial Strength Rating to “AA”

Prominent African rating agency, GCR Ratings, has upgraded Leadway Assurance Company’s national scale financial strength rating to AA (NG) from AA- (NG) the second-highest financial credit rating, in their October 2021 Report.

The agency, said the rating indicated Leadway Assurance’s superior capacity to meet financial commitments and obligations in its insurance and investments businesses.

It further said the upgrade was also indicative of the company’s stable and consistently growing outlook.
According to GCR, the outlook is underpinned by the leading insurer’s dominance of the industry’s Gross Written Premium (GWP), with an estimated market share of 9.1 per cent and a relative market share of about 5.4x in FY 2020.

GCR said Leadway Assurance’s national scale financial strength rating is a reflection of its strong financial profile, strong brand franchise, long track record of over five decades, well-entrenched relationships with brokers, and sustained penetration into the retail segment.

In addition, GCR also projected their expectations that Leadway would continue to defend its competitive position despite the increasing competitive dynamics.
“We expect the insurer’s retail growth strategy to gradually improve premium diversification and earnings capacity, and we also anticipate persistent internal capital generation to support capital growth, GCR said.

Speaking on the achievement, the Managing Director/Chief Executive Officer, Leadway Assurance, Tunde Hassan-Odukale, said, “the report further underpins Leadway’s financial strength, enabling us to deliver on our obligations to customers promptly. We are pleased that the Agency also recognised our industry claims-paying records in the last six consecutive years, with our highest claims paid ever recorded at N43.5billion in 2020; despite the evident and challenging global socio-economic realities on individuals, households, and businesses in 2020 precipitated by coronavirus pandemic and other adverse economic indices.”

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