PACRA Revises IFS Rating of Pakistan General Insurance Company Limited
Lahore, April 11, 2018 (PPI-OT): PGI is braving with stressed times. The company, under the directive of SECP, halted underwriting operations. The management is striving to restore the operations. They have given a representation that all the requisite parameters set by the legal bodies have been met. A verification process is in progress. Following which, the operations are expected to resume. This has taken time.
The rating adjustment reflects the weakening in the business and financial risk profile of the entity. This is a result of significant time being out of market, resuming business again would be a challenge. Bank enlistment is also endangered. The liquidity is significantly affected in the wake of sizeable payments and continued expenses without business.
The sponsors stand beside the company. They have full commitment to make good any deficiency in liquidity. This will depend on the resumption of business and fulfillment of other legal requirements. PACRA opines that, post resumption of business, financial strength needs to be recouped. This needs to be followed by resumption of business lines. PACRA would continue to monitor the developments and update its opinion accordingly.
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