PACRA Maintains IFS Rating of SPI Insurance Company Limited

Lahore, June 28, 2018 (PPI-OT):The rating reflects the strong business profile of the company. The company continues to demonstrate size-able growth in its top-line and the portfolio mix is well-balanced. The client base is direct with less reliance on bank business. The organization takes benefit from synergistic approach at group level – United International Group (UIG) – and replicate the group’s established practices.

With reported loss ratio, the company demonstrates underwriting profitability. The contribution from alternative income stream – investment book – is small; needs to improve. Improved equity size and hence liquidity supported by the recent right issue provides cushion to the risk absorption capacity.

The rating is dependent on the management’s ability to capitalize on its brand and group’s well-built platform for business expansion. At the same time, the liquidity level must improve and consequent income stream should likewise go up; herein attrition beyond a requisite threshold would negatively impact. Recovery of overdue receivables remain critical.

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

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