Lahore, December 04, 2017 (PPI-OT):The rating reflects Adamjee Life’s strengthening market position. This has been possible through a relatively aggressive volume growth that mainly relied on bancassurance. Herein, synergies with group bank (MCB) benefited the most. It has achieved better persistency in subsequent years renewal. The company achieved break-even and thereafter sustained surplus in CY16 but showed deficit in 9MCY17.
The company’s statutory funds are now self-subsistence; accumulated deficit of statutory fund is down significantly. Consequently, Adamjee Life has improved equity base. Start of window takaful operations has boded well for the company, adding significant volumes. Lately, the management has expanded its branch network and also has built a sales force around agency model as well to add to its growth momentum.
Meanwhile, comfort is drawn from Adamjee Life’s strong risk absorption capacity, represented by sufficient liquidity and overall quality of its investment portfolio. The continued self-subsistence of statutory funds, ability to improve its market position and strengthening of core profitability are integral for the rating. Moreover, prudent management of risk in wake of increasing business volumes and agency model remain important.
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