Pakistan Credit Rating Agency Limited assigns Insurer Financial Strength Rating to AsiaCare Health and Life Insurance Company Limited

Lahore, January 20, 2015 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has assigned the Insurer Financial Strength (IFS) rating of “A-” (Single A minus) to AsiaCare Health and Life Insurance Company Limited (AsiaCare). The rating denotes strong capacity to meet policyholders and contract obligations. The rating reflects sustained progression of AsiaCare to achieve a sizeable position in its specific niche – health insurance.

The management’s efforts have brought the company to a take-off position. The key ingredients – human resource, infrastructure, financial flexibility, and, importantly, knowledge of target markets – are now in place. This gives confidence as to the success of management’s strategy that while focusing on medium-sized corporate clients intends to penetrate into retail space.

The operational drag on liquidity has come to a negligible amount at company level. The company has strengthened the control environment. The rating also incorporates strong risk absorption capacity of the company emanating from the high level of liquid assets, which has sustained in initial years of operations.

The rating is dependent on the company’s ability to roll out its business plan in an effective and timely manner; herein, growth in topline and underwriting profits are essential. Any attrition in liquidity beyond a requisite level would negatively impact. Meanwhile, prudent management of premium receivables from corporate customers remains important.

For more information, contact:
Hammad Rashid
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

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