A.M. Best affirms global “B-” rating of Wapic Insurance

In apparent display of confidence in the financial capabilities and future outlook of Wapic Insurance plc, A.M. Best has affirmed the company’s financial strength rating (FSR) of “B-(Fair)” and issuer credit rating (ICR) of “bb-”. The outlook for both ratings is Stable.

Wapic full line service provider in the insurance industry and one of Nigeria’s oldest insurance firm with operations in Ghana.

The United States based rating agency which commenced operations in 1906 is the World’s oldest and most authoritative insurance rating and information source with its “Best’s Credit Rating Methodology” as a yardstick of determining financial strength and credit worthiness for insurance companies.

According to the statement from the rating agency, “the ratings of Wapic reflect its developing business profile in the Nigerian insurance market, its high expense base that constraints its earnings prospects and its solid risk-adjusted capitalization. The ratings also consider Wapic’s exposure to Nigeria’s weakened economic conditions and the impact on the domestic insurance sector’s increasingly challenging operating environment”

Wapic has been operating under new management since 2013 following its divestment by Access Bank. The group reported consolidated gross written premiums of NGN 5.0 billion (approximately USD 25.0 million) in 2014. Under its new business strategy, the group seeks to strengthen is competitive position by developing its profile within the corporate segment and increasing is underwriting of compulsory lines resulting in planned
L-R: Abiba Zakariah, deputy managing ,Ghana Reinsurance Company presenting WAII Fellowship Certificate to Shakiru Oyefeso, managing director, STACO Insurance plc during award ceremony in Banjul, Gambia.growth in excess of 25% per annum for the medium term.

A.M. Best expects Wapic’s risk-adjusted capitalization to be maintained at a solid level, based on its performance forecasts and earnings retention. Wapic’s balance sheet strength is supported by a conservative investment portfolio consisting mainly in cash and fixed income investments as well as a panel of highly rated reinsurers.

A statement by the company yesterday said: “we are delighted at the outcome of the 2015 rating review. It underscores the successful execution of the company’s strategic plan which is being methodically executed. We will continue to strengthen our underwriting capabilities and further enhance our presence in the highly competitive markets of Nigeria and Ghana by investing more in our distribution capabilities.”