Pakistan Credit Rating Agency maintains IFS Rating of The United Insurance Company Of Pakistan Limited

Lahore, January 16, 2013 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has maintained the IFS rating of The United Insurance Company of Pakistan Limited (UIC) at “A” (Single A). The rating denotes strong capacity to meet policyholder and contract obligations. Risk factors are moderate, and the impact of any adverse business and economic factors is expected to be small.

The rating reflects UIC’s strong risk absorption capacity emanating from a robust liquidity profile that amply supports contingencies towards the policy holders. The company’s business plan predominantly focuses on wide-spread small sized business volumes through an intensive marketing force.

Although this has led to high business acquisition cost on a comparative scale, the benefits are accrued in the form of low loss ratio, engendering superior underwriting performance compared to peers. The rating incorporates improved control environment supplemented by real time IT platform.

The rating is dependent on management’s ability to successfully execute its business strategy of growth, while preserving underwriting profitability. Meanwhile, strengthening of investment book, enhanced contribution from the investment income and efficiency in acquisition cost with economies of scale are important.

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

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