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

Lahore, December 01, 2015 (PPI-OT):The Pakistan Credit Rating Agency (PACRA) has maintained the IFS rating of The United Insurance Company Limited (UIC) at “A+” (Single A Plus). The rating denotes strong capacity of the company to meet policyholder and contract obligations.

The rating reflects UIC’s strong business fundamentals emanating from a robust underwriting performance. The company is led by strategic vision of the chairman of United International Group – Mian M. A. Shahid, an insurance veteran. Cognizant of the competitive environment, the company is gradually expanding towards high ticket clients, enabled by UIC’s treaty capacity.

The management is conscious of the risk which is not expected to exceed beyond the company’s risk absorption capacity. UIC has strengthened its liquidity profile though it lags peers. The growth in business volume is diluting the impact of historically high business acquisition cost. UIC’s investment book provides sustainable income though needs to build in congruence of insurance float.

The rating requires sustained improvement in liquidity of the company. The build-up of claims liability and the turnaround time is an area of attention. The enhanced deployment in strategic investments would take some time to generate returns.

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