Karachi, March 22, 2019 (PPI-OT): VIS Credit Rating Company Limited (VIS) has assigned Insurer Financial Strength (IFS) rating of ‘AA-’ (Double A Minus) to The United Insurance Company of Pakistan Limited (UICPL). The IFS rating of ‘AA-’ denotes very high capacity of meeting policy holder and contractual obligations. Moreover, the risk is modest, but may vary slightly with possible changes in economic conditions. Outlook on the assigned ratings is ‘Stable’. The assigned rating takes into account the sound business profile of the United Group. The group has business interests in insurance, microfinance, information technology, dairy and vehicle tracking.
UICPL being the flagship company of the group is a significant player among the lead general insurers, it also has an established and growing takaful segment of the business. Rating derive strength from growth in business volumes and improvement in underwriting performance. Credit risk emanating from reinsurance panel selection remains sound with majority reinsurers rated in category ‘A’ or higher.
The rating takes into consideration the planned growth in topline and profitability to harness the relatively high leverage indicators and increasing trend in outstanding claims on a timeline basis. There is need to focus on supporting the sound underwriting results with commensurate investment income which is thin on account of strategic investment in a microfinance bank wherein turnaround is expected in the rating horizon. Meanwhile, liquidity management would be important.
Rating is dependent upon continued strength in underwriting risk management, planned growth of business volume with sound management of profitability and liquidity giving further strength to the capitalization position.
For more information, contact:
Director Compliance and Rating Analytics,
VIS Credit Rating Company Limited
VIS House, 128/C, 25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi, Pakistan
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: bilal@jcrvis.com.pk
Website: http://jcrvis.com.pk/