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Pakistan Credit Rating Agency maintains IFS Rating of Askari General Insurance Company Limited

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by January 16, 2013 General

Lahore, January 16, 2013 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has maintained the IFS rating of Askari General Insurance Company Limited (AGICO) at “A” (Single A). The rating denotes strong capacity to meet policyholder and contract obligations. Risk factors are moderate, and the impact of any adverse business and economic factors is expected to be small.

The rating reflects AGICO’s sustained core performance backed by management’s prudent underwriting strategy. The rating takes into account improving control environment enabled through recently implemented real time core software providing tools for holistic oversight and efficient decision making.

The investment book of the company, mainly deployed in low risk liquid avenues, provides a reasonable cushion to the company’s risk absorption capacity. This also brings stable income stream, supplementing underwriting operations. The association of the company with ‘Askari’ brand is also a rating consideration.

The rating is dependent on the company’s success in upholding the improving trend in its underwriting profitability. At the same time, gradual improvement in AGICO’s solvency position in line with its business growth remains critical. The company’s insurance related receivables have swelled, relative to the business growth, reversal of this trend is crucial.

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

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