Japan Credit Rating –Vital Information Services revises the Insurer Financial Strength Rating of East West Insurance Company Limited to BBB+,
Karachi: JCR-VIS Credit Rating Company Limited has revised the Insurer Financial Strength (IFS) rating of East West Insurance Company Limited (EWI) from ‘A-’ (Single A Minus) to ‘BBB+’ (Triple B Plus). Outlook on the assigned rating is ‘Stable’.
The revision in rating takes into account the reduction in loss absorption capacity of the institution. This is despite the recently announced equity injection of Rs. 25m, as equity has experienced significant erosion from end-2007 level, when the rating was last revised upwards.
This erosion was due to losses on investments. Although re-insurance panel of the company is sound, EWI bears a significantly larger proportion of risk on its own account compared to its peers, in view of which a larger equity cushion is required.
Overall profitability was significantly compromised in 2009, though there has been an improving trend in the same, thereafter. Investment management function may be strengthened to provide support to profitability. Insurance debt is within manageable limits
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: email@example.com