KARACHI: The Pakistan Credit Rating Agency (PACRA) has maintained the AA rating of the United Insurance Company (UIC).
A statement issued by PACRA said that UIC is one of the prominent players in the insurance sector with a balanced portfolio and good profitability representing all segments of the sector.
The company has good capability to absorb risks and it is striving for higher standards in various facets including efficiency and transparency and governance standards, PACRA said.
Meanwhile, UIC has secured AA rating from another credit rating agency JCR which said that the company can fulfil its financial obligations within the established due dates.
Speaking on the development, CEO of the United Insurance Company Mian M.A. Shahid said that pandemic has resulted in disruption and heavy losses to the businesses which have brought the importance of the insurance industry to the public eye.
He said that the insurance industry plays an important part in national development while the pandemic has underlined its importance and now more people are taking interest in insurance for the security of their families and business.
The losses linked to COVID-19 has increased the importance of the role of the insurance sector in development, and in the economic resilience of businesses and individuals, he added.
Mian Shahid said that savings alone are not enough to achieve financial freedom, therefore, insurance of life and assets is equally important which need a sound, stable and developed insurance market.
We work on the principle of transfer of the financial risk from the insured to the insurer which results in reducing the financial burden on the shoulder of a policyholder in case of an unforeseen event, he informed.
He further said that none of us can see the future or predetermine the future events and with insurance in place, any financial stress will be taken care of, and the policyholder can focus on other important things like recovery. The UIC has also paid10 percent interim dividend to shareholders which has been calculated at Rs29 crore and 50 lakh.