Daily Archives: December 27, 2017

JCR-VIS Reaffirms IFS Rating of Askari General Insurance Company Limited

Karachi, December 27, 2017 (PPI-OT):JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the Insurer Financial Strength (IFS) rating of Askari General Insurance Company Limited (AGICO) at ‘AA-’ (Double A Minus). Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on August 31, 2017. The rating of AGICO draws strength from sound underwriting performance, strong liquidity profile and sustainable investment income. The company’s association with Army Welfare Trust is also a key rating factor. Synergies with the primary sponsor is expected to be more pronounced with higher business expected from group entities, going forward.

During FY16, growth in company’s business volumes outperformed industry growth leading to improved market share. For FY17, the management has embarked upon exceeding FY16 figures and expects growth in business volumes mainly on the back of CPEC related infrastructure projects. Overall claims performance has also remained satisfactory over time. Over the years, the company has depicted an improving trend in income from core underwriting operations while bottom line also gets impetus from investment income.

AGICO’s reinsurance panel is diversified; risk profile of the panel is considered sound. Risk profile of the investment portfolio is considered low as quantum of equity related portfolio is not sizeable in relation to the company’s balance sheet size. The composition of the investment portfolio is expected to largely remain unchanged with investment to be concentrated in liquid avenues.

With enhanced equity base, leverage indicators have improved, though remained higher vis-à-vis peers. JCR-VIS expects further improvement in leverage indicators. Liquidity profile is considered sound reflected by sizeable liquid assets maintained in relation to total liabilities and technical reserves. However, insurance debt in relation to gross premium increased on a timeline basis. JCR-VIS expects the company to keep insurance debt within certain limits, in line with the outstanding rating.

For more information, contact:
CFA
JCR-VIS Credit Rating Company Limited
VIS House, 128/C,
25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: sobia@jcrvis.com.pk

JCR-VIS Reaffirms Entity Ratings of Cyan Limited at ‘A/A-1’

Karachi, December 27, 2017 (PPI-OT):JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the entity ratings of Cyan Limited (CL) at ‘A/A-1’ (Single A/A-One). Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on December 13, 2016.

Assigned ratings of Cyan Limited (CL) derive strength from its sponsors including Dawood Hercules Group, a prominent industrial conglomerate having presence across diversified sectors. On a standalone basis, current ratings reflect CL’s sound liquidity profile, adequate capitalization indicators and experienced management team. CL is primarily focused towards investing in high growth potential companies while maintaining a proprietary book.

Other than managing a portfolio of marketable securities, the company’s business plan also envisages investments in private equity deals; no deals have been signed under this investment class as yet. The company has historically re-strategized plans for developing its private equity portfolio. Nonetheless given the prevailing challenges of private limited companies, CL also plans to enter into strategic advisory services along with private equity. Developments in this regard are yet to materialize.

Given the recent downward trajectory witnessed in the stock market, profitability of CL was negatively affected during 9M17. Investment portfolio of the company primarily comprises dividend yielding and growth stocks. As per management, recent losses on the investment portfolio are expected to be recouped over time. Nonetheless, future profitability of the company will continue to remain sensitive to movements in the equity market.

For more information, contact:
CFA
JCR-VIS Credit Rating Company Limited
VIS House, 128/C,
25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: sobia@jcrvis.com.pk

Water Supply Wing possesses a fleet of 34 water tankers

Islamabad, December 27, 2017 (PPI-OT):Mayor of Islamabad and Chairman Capital Development Authority (CDA), Sheikh Anser Aziz has said that special funds have been released to Water Supply Wing to ensure sufficient supply of water to the residents of the Federal…

Islamabad Signal Free Expressway Corridor

Islamabad, December 27, 2017 (PPI-OT):After completing Koral and I-8 Interchanges in the first phase of Islamabad Expressway Signal Free Corridor, Sohan Interchange would be opened by next month while work on the Khana Interchange is being completed on fast pace….

Pakistani Students shine in The Belt and Road Teenager Maker Camp and Teachers Workshop

Islamabad, December 27, 2017 (PPI-OT):Pakistan Science Foundation (PSF) is earnestly making efforts for popularization of science among the youth and motivating them towards Science Education. In order to promote awareness and involvement of youth in emerging Science Technology Engineering fields,…

Bank Holiday

Karachi, December 27, 2017 (PPI-OT):The State Bank of Pakistan will remain closed for public dealing on Monday, the 1st January 2018, observed as bank holiday. All banks / DFIs / MFBs shall, therefore, remain closed for public dealing on the…