JCR-VIS Reaffirms IFS Rating of Silver Star Insurance Company Limited at A-,

Karachi, December 31, 2012 (PPI-OT): JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the Insurer Financial Strength (IFS) rating of Silver Star Insurance Company Limited (SSI) at ‘A-’ (Single A Minus). Outlook on the assigned rating is ‘Stable’.

SSI has shown stable growth in business volume; business mix is lead by risks underwritten in the fire and marine segments. In continuation with the past strategy, the company mainly targets direct business through its branch network, mainly in the province of Punjab. Underwriting operations have posted consistent performance, with claims ratio maintained on the lower side. Capacity enhancements were negotiated during the year under fire and marine treaties whereas retention levels remained unchanged.

Liquidity position of SSI is considered adequate, with positive cash flows generated from operations augmenting liquid reserves on the balance sheet. There is nevertheless a considerable rise in insurance debt; which needs to be arrested. Given retention of profits, equity base of the company has improved on a time line basis. Leverage indicators of SSI largely remained at the last year level and provide room to undertake planned growth.

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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