Lahore, June 29, 2018 (PPI-OT):The rating reflects sustained efforts of the incumbent leadership to steer the company out of prevalent challenges. The company is envisaged to cautiously underwrite insurance business; the market share has gone down. The results are depicted in the fall of GPW but with greater decrease in the amount of underwriting losses. The support to profitability has emanated from investment income, thought largely contributed by relatively high risk equity investments. The company has accumulated a high quantum of liabilities, cushioned by reinsurance receivables and liquid investments; some dilution therein is seen. Liquidity is essential and must be maintained at high levels.
The rating is dependent on fast ascend to positive performance matrix. Meanwhile, the management has to carefully manage its insurance asset liability structure wherein timely realization of outstanding premium along with smooth settlement of claims is critical. Any further dilution in the risk profile of the company may impact the rating.
For more information, contact:
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