Pakistan Credit Rating Agency maintains Insurer Financial Strength rating of SPI insurance Company Limited

Lahore, June 17, 2015 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has maintained the Insurer Financial Strength (IFS) rating of SPI Insurance Company Limited (SPI) at “A-” (Single A minus). The rating denotes a strong capacity to meet policyholder and contract obligations. The rating reflects SPI’s improving risk profile emanating from growth in business, sustained profits, and low customer concentration.

This has been made possible by the focused business strategy of the new management. The organizational structure is aligned to the business operations of the company taking benefit of synergistic thought at the group level-United International Group. The focus is to replicate the group’s established practices.

The outcome is in the form of stable business composition, growing premium, claim efficiency, and related profitability. Although the absolute size of the company’s equity and hence liquidity is relatively small, consistent profitability has and would ensure phased improvement therein.

The rating is dependent upon successful execution of the business plan, thereby sustaining the trend in the improving market positioning of the company. Meanwhile, improvement in the risk absorption capacity, particularly the liquid investments, remains 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