AM Best Places Credit Ratings of Custodian and Allied Insurance Limited Under Review With Negative Implications
17 Abril 2024 - 10:45AM
Business Wire
AM Best has placed under review with negative
implications the Financial Strength Rating of B (Fair) and the
Long-Term Issuer Credit Rating of “bb” (Fair) of Custodian and
Allied Insurance Limited (CAIL) (Nigeria). CAIL is the non-life
insurance subsidiary of Custodian Investment Plc.
The Credit Ratings (ratings) of CAIL have been placed under
review with negative implications following a series of material
Nigerian Naira devaluations spanning 2023 and 2024. Although the
company holds significant surplus foreign currency investments that
typically would be beneficial while its domestic currency is
devaluing, initial indications are that CAIL’s risk-adjusted
capitalisation has deteriorated instead. The ratings will remain
under review until AM Best has fully assessed the company’s audited
financial statements for year-end 2023 and first quarter of
2024.
This press release relates to Credit Ratings that have been
published on AM Best’s website. For all rating information relating
to the release and pertinent disclosures, including details of the
office responsible for issuing each of the individual ratings
referenced in this release, please see AM Best’s Recent
Rating Activity web page. For additional information
regarding the use and limitations of Credit Rating opinions, please
view Guide to Best’s Credit Ratings. For information
on the proper use of Best’s Credit Ratings, Best’s Performance
Assessments, Best’s Preliminary Credit Assessments and AM Best
press releases, please view Guide to Proper Use of Best’s
Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and
data analytics provider specialising in the insurance industry.
Headquartered in the United States, the company does business in
over 100 countries with regional offices in London, Amsterdam,
Dubai, Hong Kong, Singapore and Mexico City. For more information,
visit www.ambest.com.
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