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Pakistan Credit Rating Agency Limited upgrades entity ratings of East West Insurance Company Limited

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by November 14, 2016 General

Lahore, November 14, 2016 (PPI-OT):The ratings take into account overall improvement in the risk profile of the company. Persistent growth enabled sizeable rise in market share in recent years (9M16: ~3%, CY12: 1.8%). Prudent underwriting practices along with a focus on diversified products and customers helped the company to demonstrate continued healthy underwriting performance. Revamped investment management framework has been beneficial, thereby adding a sizeable cushion to the bottom-line. Rolling out the advanced IT infrastructure and real time insurance solution, expected to complete by end-Dec16, would augment the control environment.

The company envisages strengthening its footprints, while pitching medium and small sized risks, with enduring focus on the crop and livestock insurance. The financial risk profile benefits from the company’s strong liquidity position; cash generation efficiency of the company is higher. 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 is dependent on company’s ability to improve its market position with sustained profitability. The liquidity position and, hence, financial risk profile should remain afloat along with growth. Timely implementation of upgraded IT infrastructure and MIS is critical for the rating.

For more information, contact:
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

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