Pakistan Credit Rating Agency Limited Maintains Entity Rating of State Life Insurance Corporation of Pakistan

Lahore, December 04, 2017 (PPI-OT):The rating reflects State Life Insurance Corporation’s utmost risk absorption capacity on the back of Government of Pakistan’s (GoP) guarantee for policyholders’ liabilities. The sum insured including bonuses (if any) declared by State Life Insurance Corporation are guaranteed as to payment in cash by GoP under article 35 of the Life Insurance (Nationalization) Order, 1972. The rating takes into account State Life Insurance Corporation’s sound market position in life insurance industry emanating from extensive and well-penetrated distribution network, experienced management team and robust financial profile.

This makes State Life Insurance Corporation the single largest player, capturing major portion of industry’s premium. The Corporation is pursuing a growth strategy wherein, while focusing on existing business lines, it intends to expand its product offerings – Bancassurance, Window Takaful and Microinsurance. State Life Insurance Corporation has taken up Government initiated health programmes, reaching public at grass-root level. This, while bringing volumes, would facilitate sustaining market position in the wake of increasing competition from the private sector. SLIC’s policyholder’s obligations are supported by a sound and low risk investment portfolio; hence any drag on its capital base is unlikely.

State Life Insurance Corporation’s ability to maintain its leadership in the life insurance sector is important. In this regard, successful execution of the envisaged business strategy including diversification and growth is essential. Additionally, implementation of core insurance ERP system will enable efficient business operations with the real time provision of services to all stakeholders.

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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