Lahore, April 19, 2023 (PPI-OT):United Insurance Company (“United Insurance” or “the Company”) is among the prominent players in the insurance industry. It has a strong presence throughout the Company. The Honourable Sindh High Court has approved the “scheme of merger” of M/S SPI Insurance Company Limited (SPI) with and into the United Insurance which would further augment the Takaful business. The management is committed to achieving higher benchmarks in transparency and control environment as the system review is underway. During CY22, the topline of the Company grew by 29.7% (including window takaful operations) as compared to the corresponding period last year.

This is majorly supported by takaful business. The revenue from conventional business is highly concentrated to the miscellaneous category (47.3%), which primarily included hospitalization, travel, and bond business, followed by Fire and property damages (17.5%), crop (15.1%), motor (14.1%) and marine (6.0%). However, Company’s Takaful business is majorly concentrated to the health segment (57.8%) followed by motor (26.0%), fire and property damages (9.0%) and marine and aviation (7.3%). The Company’s underwriting performance exhibited a decline, attributed to a rise in claims incurred during CY22. Hence, an increase in claims amount also impacted the combined ratio, stood at 68.4%, representing an increaase from SPLY at 63.8%. This increase in the combined ratio demonstrates a decrease in the Company’s underwriting profitability.

The Company’s investment portfolio is majorly concentrated with Government Securities (44.8%). Whereas, United Insurance withdraws all of the investment from Apna Micro Finance Bank. Furthermore, the Company has envisaged a plan of diversifying into real estate and in life insurance business. Moreover, the Company continues to enjoy a sound re-insurance panel that provides extensive risk absorption coverage.

The ratings are dependent upon the envisaged plan of sustaining its relative positioning and its control environment. Continued generation of internal capital, enhancement of liquidity and opening of new venture (The United Life Assurance) in near future is considered essential.

For more information, contact:

Analyst,

The Pakistan Credit Rating Agency Limited (PACRA)

Awami Complex, FB1, Usman Block New Garden Town,

Lahore, Pakistan

Tel: +92-42-5869504-6

Fax: +92-42-5830425

Email: hammad.rashid@pacra.com

Website: www.pacra.com