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FOR IMMEDIATE RELEASE
LONDON - APRIL 17, 2024 11:21 AM (EDT)
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.
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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.