Pakistan Credit Rating Agency upgrades Insurer Financial Strength Rating of Atlas Insurance Limited
Lahore, March 07, 2013 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has upgraded the Insurer Financial Strength (IFS) rating of Atlas Insurance Limited (AIL) to ‘AA-’ (Double A minus) (previously A+). The rating denotes a very strong capacity to meet policyholder and contract obligations. At the same time risk factors are considered modest, and the impact of any adverse business and economic factors is expected to be very limited.
The rating captures AIL’s robust underwriting performance, persistently improving over the years. This results from a stable stream of quality group business and a diverse segment mix. Although AIL has a favorable reinsurer commission structure, its operating cost is relatively high, wherein efficiency could be achieved.
The rating takes into account healthy liquidity profile, providing strong coverage to the company’s obligations. Meanwhile, sound control environment with continuously improving IT infrastructure remains key considerations.
AIL continues to have a sound panel of reinsurers with favorable treaty terms and prudent risk retention policies. The company’s association with Atlas group providing benefits in terms of sustained low-risk captive business, while ensuring sound governance framework, remains a key rating factor.
The rating is dependent on sustained business and financial profile of the company. The company is taking a structured approach in handling the outstanding claims; this should gradually reflect in the rationalization of outstanding days. Herein, the related MIS capturing the essence of the process would be critical. Meanwhile, any significant deterioration in underwriting performance and/or investment book would be negative.
For more information, contact:
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