Japan Credit Rating-Vital Information Service Reaffirms Insurer Financial Strength rating of Century Insurance Company Limited

Karachi: JCR-VIS Credit Rating Company Limited has reaffirmed the Insurer Financial Strength (IFS) rating of Century Insurance Company Limited (CICL) at ‘A’ (Single A) with a ‘Stable’ Outlook.

Business volumes have depicted growth in 2011. There has also been higher growth in non-group business in 2011 vis-à-vis 2010, indicative of increased focus on marketing activities by the company. While combined ratio of the company has remained favourable i.e. below 100%; there has been variation in underwriting profits over time.

Net claims ratio continues to compare favourably to peers. Given that more than 40% of the business of the company is derived from associated concerns, there is room to reduce the expense ratio. There has been variability in overall profits of the company emanating from return/losses on investment portfolio. With improvement in risk profile of the investment portfolio, greater stability is expected in investment income, going forward.

Liquidity profile of the institution is considered sound. Moreover, capitalization indicators of the company are well within prudent limits and indicate room for further growth. Loss absorption capacity of the institution and ability to underwrite business is supported by a diverse panel of reinsurers.

For more information, contact:
Mr. Javed Callea
JCR-VIS Credit Rating Company Limited
Tel: +9221 35311861 (10 lines) (Ext: 501)
Fax: +9221 35311872-3
E mail: javed.callea@jcrvis.com.pk

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