LONDON, April 17, 2024--(BUSINESS WIRE)--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.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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. For more information, visit www.ambest.com.

Copyright © 2024 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240417248901/en/

Contacts

Dale Kirby
Financial Analyst
+44 20 7397 0276
dale.kirby@ambest.com

Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
christopher.sharkey@ambest.com

Tim Prince
Director, Analytics
+44 20 7397 0320
timothy.prince@ambest.com

Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
al.slavin@ambest.com