Pakistan Credit Rating Agency assigns ‘Positive Outlook’ to the IFS rating of Adamjee Insurance Company Limited

Lahore, June 11, 2015 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has assigned “Positive Outlook” to the Insurer Financial Strength (IFS) rating of “AA” (Double A) of Adamjee Insurance Company Limited (AICL). The rating denotes very strong capacity of the company to meet policyholder and contract obligations. The rating reflects AICL’s strong market position in the insurance industry in Pakistan.

The management’s focus on expansion of business, while reinvigorating its underwriting practices and rationalizing its cost structure, is expected to reflect positively on AICL’s core profitability. The clarity in the business plan and concerted efforts by the management has started yielding benefits; strengthening its position amongst peers.

The company’s sizeable investment portfolio, albeit having concentration in group companies, continues to supplement its profitability and financial strength. Meanwhile, the rating takes into account the association of AICL with Nishat Group. The Positive outlook captures improving market position of the company, herein the GPW size and the underwriting performance has shown resilience.

The stability in the management team and their ability to cohesively fully execute the business plan should support the trajectory. AICL must continue strengthen its market position, while achieving translation of GPW into sustainable underwriting profitability. Ongoing strengthening of claims management system should reflect in lowering the claims outstanding days.

For more information, contact:
Hammad Rashid
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