LAW UNION UPGRADES TO A- CLAIMS PAYING ABILITY RATINGS WITH STABLE OUTLOOK
March 09th, 2018
Global Credit Rating of South Africa has upgraded the Law Union and Rock Insurance Plc. rating to A- from BBB+ with a stable outlook. This implies that Law Union have high claims paying ability relative to other issuers or obligations in Nigeria.
This rating reflects Law Union strong risk adjusted capitalization, underpinned by a sizeable capital base catering for the quantum of insurance and market risk exposures. It 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.
The Managing Director of the Company, Mr. Jide Orimolade 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. The Managing Director 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. Mr. Orimolade reaffirms the company’s resolute commitment to meeting their obligations as they fall due.
According to Mr 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 our improved service delivery which has engendered our esteemed numerous 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 Mr Orimolade.
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, development of tailored products, improved branch network efficiency and distribution of their retails products through digital/online media.