Press Release
JCR-VIS upgrades the IFS rating of Security General Insurance Company Limited to A+
Karachi, December 31, 2010: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has upgraded the Insurer Financial Strength (IFS) rating of Security General Insurance Company Limited (SGI) to ‘A+’ (Single A plus) from ‘A’ (Single A). Outlook on the rating has been revised from ‘Positive’ to ‘Stable’.
The rating incorporates SGI’s strong sponsor support from an eminent local business group. The rating also takes into account the consistency in business growth given a challenging macroeconomic environment. During the last couple of years, the company has maintained a relatively low net claims ratio while depicting a positive bottom line. The support to net profitability emanates from a sizable investment portfolio with companies having a history of consistent dividend payout. The company has a panel of prominent international re-insurers with adequate reinsurance capacities.
The proportion of liquid investments on books along with positive operational cash flows depicts SGI’s high capacity to meet unforeseen contingencies in a timely manner. Moreover, the level of capitalization provides substantial cushion vis-à-vis business volumes. The company has a robust internal control mechanism having an efficient MIS and complete documentation with regards to SOPs and manuals. The stability in senior management is a source of rating comfort to JCR-VIS.
For further information on this rating announcement, please contact Mr. Ziauddin Ahmed or Ms. Sabeen Saleem (Ext: 510) at 021-35311861-70 or fax to 021-35311872-3.
Faheem Ahmad
President & CEO