Pakistan Credit Rating Agency maintains rating of IGI Insurance Limited
Lahore, February 21, 2013 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has maintained the IFS rating of IGI Insurance Limited (IGI) at “AA” (Double A). The rating denotes a very strong capacity of the company 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 draws comfort from the investments holding company structure of IGI. This, while providing a revenue stream, provides strong risk absorption capacity to the company, engendering high level of resilience and flexibility against varied risks. At the same time, the rating recognizes robust underwriting performance that has been persistent over the years.
A notable improvement has been made in the risk management framework, augmented by robust MIS platform and upgraded IT infrastructure. This also helped the company to bring efficiency, notably in claims management in the whole system and underwriting process. Besides, alliance with Packages Group is also a key contemplation.
The rating remains dependent on the management’s ability to strengthen its market position in a competitive landscape. Moreover, the management expects the recent acquisition of a life insurance company to benefit IGI in stronger footings in the insurance industry; when transpired, would reflect positively on the rating. Nevertheless, any material dilution in the risk absorption capacity would impact the rating.
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