CUSTODIAN, RATED BY A. M. BEST

A.M. Best Europe – Rating Services Limited has affirmed the financial strength rating of B (Fair) and issuer credit rating of "BB" of Custodian and AlliedInsurance Plc. The outlook assigned to both ratings is stable.

The rating affirmations reflect A.M. Best’s expectation that Custodian’s risk–adjusted capitalization will continue to remain supportive of its current rating level. Additionally, the company’s competitive profile and operating performance are expected to remain solid. 

Custodian’s risk–adjusted capitalization is expected to remain at a strong level and going forward, A.M. Best expects the company’s risk–adjusted capitalization to be supported by the robust earnings of the Group.

Prospective operating performance is expected to remain solid. The Custodian Group announced profit before tax of=N=2.5billion for the unaudited third quarter ended 30 September 2013. This indicates an increase of 89.5 per cent over the =N=1.3 billion recorded in the corresponding period of 2012. Profit after tax increased by the same proportion from =N=1.14 billion to =N=2.1 billion, while the Group’s asset base increased from =N=40.9 billion to =N=47.2 billion, indicating 15.3 per cent growth within a nine–month period. The gross written premium was =N=19.8 billion from =N=9.4 billion.

Commenting on the ratings, the Managing Director, Custodian and Allied Insurance, Mr. Wole Oshin said "This is a welcome development. A. M. Best is the world leader in Insurance Ratings, and we are pleased with the stable outlook given the company. We will continue to address our operations to benchmark against the best in the world, with the view to improve this performance in the near future." 

Custodian and Allied Insurance Plc is quoted on The Nigerian Stock Exchange (NSE), and is approved by the regulatory bodies in Nigeria to offer insurance services, and provide services that extend beyond national frontiers