Consolidated Hallmark Insurance Limited, the non-life insurance subsidiary of Consolidated Hallmark Holdings Plc, has received an upgraded A+(NG) financial strength rating from GCR Ratings, with a Positive Outlook.
The upgrade moves the insurer up from its previous A(NG) rating and marks the first improvement in its GCR rating since the agency began covering the company in August 2023.
GCR attributed the upgrade to stronger risk-adjusted capitalisation, adequate liquidity, improving earnings and a sustained turnaround in the insurer’s underwriting performance.
A major factor was the improvement in CHI’s combined ratio, which fell from 113.5 percent in 2023 to 83.9 percent in 2024 and further to 78.2 percent in 2025.
The insurer’s 2025 combined ratio was also below the Nigerian non-life insurance industry average of 95 percent, according to GCR.
The ratings agency linked the improvement to a reduction in high-value claims, more efficient reinsurance arrangements, scale benefits and tighter cost management.
CHI also recorded a 33.7 percent compound annual growth in insurance revenue over five years, reaching N41.7 billion in 2025. The growth was supported by its distribution network and intermediary relationships across eight business lines.
The company’s capital position strengthened during the period, with its capital adequacy ratio increasing to 2.5 times from 1.9 times. Its statutory solvency margin stood at 11.9 times, well above the regulatory minimum of 1.0 times.
Liquidity remained strong, with coverage at 2.2 times and cash and short-term placements accounting for 54.8 percent of investments.
Mary Adeyanju, managing director and chief executive officer of CHI Insurance, said the rating reflected the company’s focus on underwriting discipline, risk management and financial resilience.
“The A+(NG) rating is a strong affirmation of the discipline and resilience behind our transformation,” Adeyanju said.
She said the company would continue to focus on profitable growth while investing in underwriting, customer experience, innovation, operational efficiency and capital management.
GCR said the Positive Outlook reflects the potential for further improvement if CHI sustains its underwriting and competitive gains while maintaining adequate capital and liquidity.
The agency projects the insurer’s capital adequacy ratio to remain between 2.2 and 2.4 times over the next 12 to 18 months, while liquidity coverage is expected to stay above 2.0 times.
Further rating improvement, GCR said, would depend on CHI sustaining its underwriting performance and competitive position, alongside capital adequacy and liquidity coverage above 2.2 times and 1.8 times respectively.
The agency also noted the expected contribution from CHI Life Assurance Limited, the group’s wholly owned life insurance subsidiary, as well as other diversification efforts.
