Pakistan Credit Rating Agency Limited maintains Insurer Financial Strength rating of East West Insurance

Lahore, December 01, 2015 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has maintained the Insurer Financial Strength (IFS) rating of East West Insurance Company Limited (EWI) at “A” (Single A). The rating denotes strong capacity to meet policyholders and contract obligations.

The rating incorporates management’s prudent strategy – focused on a diverse mix of products and customers. This helped the company to sustain its underwriting performance. EWI is implementing a comprehensive investment strategy, approved by board investment committee, in a structured manner. These steps translated into significantly improved investment income.

The financial risk profile benefits from the company’s strong liquidity position; cash generation efficiency of the company is higher than its peers. The longevity of the company is supported by a consensus document among the sponsoring family members regarding the succession of key roles, though material implementation progress is yet to be achieved.

The rating requires sustainable improvement in underwriting performance of the company, while ensuring consistent growth. Strengthening of MIS and IT infrastructure are critical to match expanding business volumes. Any material dilution in the risk absorption capacity would impact the rating.

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