Agusto & Co has assigned a BBB- long-term rating with a stable outlook to Universal Insurance Plc, citing improved profitability, low claims experience and a strong liquidity position.

In its rating note, the agency said the insurer’s ability to maintain a solvency margin of 184.9 per cent, well above the regulatory minimum of 100 per cent, underscores its capacity to absorb risks and support underwriting activities.

The firm recorded strong performance in 2024, driven by initiatives to deepen relationships with customers and brokers, alongside improvements in digital customer experience. Shareholders’ funds rose to N13.2 billion, a 27 per cent year-on-year increase, supported by full profit retention.

Insurance revenue climbed 71.9 per cent to N13.8 billion, while profit before tax surged to N2.1 billion, from N526.7 million in 2023. Although gross claims more than doubled to N3.6 billion, largely from the oil and gas segment, reinsurance recoveries reduced net claims by 48 per cent, outperforming the industry average.

Universal Insurance’s investment portfolio grew 14.5 per cent to N10.5 billion, while operating cash flow nearly doubled to N3.1 billion, covering incurred claims liabilities 1.5 times.

Agusto & Co said claims payments in early 2025 weighed on performance, but expects reinsurance recoveries to support profitability over the full year.

Managing Director, Dr Jeff Duru, said the rating reflects management’s commitment to strengthening resilience, improving operating efficiency and delivering sustainable value amid macroeconomic challenges.