RATING ACTION:
On December 5, 2024, CariCRIS assigned initial issuer/corporate credit ratings of CariA- (Foreign and Local Currency Ratings) on the regional rating scale to NAGICO Holdings Limited (NHL or the Group). A Stable Outlook was assigned.
RATING SENSITIVITY FACTORS:
Factors that could, individually or collectively, lead to an improvement in the Ratings and/ or Outlook include:
- Increase in operating profit margin to 10% and over for 2 consecutive years
- Decline in cost to income ratio sustained at < 55% for 2 consecutive years
Factors that could, individually or collectively, lead to a lowering of the Ratings and/ or Outlook include:
- Reduction in the credit quality of NHL’s financial investment portfolio
- Loss of relationship with major reinsurers and failure to provide viable replacements
- A 2-notch deterioration of the credit rating of any of NHL’s major reinsurers by Standard and Poor’s Ratings Services
- A deterioration of any of the subsidiary’s capital adequacy ratio to below minimum regulatory requirements
- Substantial deterioration in consolidated financial performance leading to an operating loss margin of -10% or below for 2 consecutive years
- Material deterioration in the financial performance and position of its main subsidiary, NAGICO Insurance Company Limited which accounted for 53.5% of total revenue in 2023.
Analysts’ Contact Info:
Anelia Oudit
Mobile: 1-868-487-8364
[email protected]
Keevan Roopan
[email protected]
Disclaimer: CariCRIS has taken due care and caution in compilation of data for this product. Information has been obtained by CariCRIS from sources which it considers reliable. However, CariCRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. No part of this report may be published / reproduced in any form without CariCRIS’ prior written approval. CariCRIS is also not responsible for any errors in transmission and especially states that it has no financial liability whatsoever to the subscribers/ users/ transmitters/ distributors of this product.