Lahore, June 13, 2019 (PPI-OT): The rating incorporates the Company’s association with astute sponsors Habib Family. This, while providing stability to revenue stream in the form of captive business, establishes a sound governance framework. The rating takes note of HIC’s business strategy that encompasses enhancing its market presence with innovative products while diversifying revenue stream. The company has jacked up its GPW.
Although the company booked an underwriting loss, the quantum has reduced. Product innovation and extended market outreach, capitalising on Habib group, bodes well for HIC’s business profile. The company’s conservatism, in the form of low risk retention, has continued yielding profitability. Profitable growth is a challenge, which is essential to the relative positioning of the company in future. HIC maintains a reasonable, fundamentally strong and diverse investment portfolio, which not only provides risk absorption capacity, but also supports profitability.
The rating is dependent on strengthening of company’s relative position in the market. In addition, further improvement in business size and the underwriting profitability will be essential in deriving the future outlook of the company. The liquid profile needs to be strengthened as the company grows.
For more information, contact:
Analyst
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com