Press Release
JCR-VIS Reaffirms IFS Rating of National Insurance Company Limited at AA+
Karachi, February 22, 2008: JCR-VIS Credit Rating Co. Ltd. (JCR-VIS) has reaffirmed the Insurer Financial Strength rating of National Insurance Company Limited (NICL) at ‘AA+’ (Double A Plus) with a ‘Stable’ outlook.
NICL functions as an un-quoted public limited company with capital held entirely by the Government of Pakistan. Over the years, NICL has enjoyed business support from the government, being the sole provider of services for public sector risks. Strong underwriting results and investment income have allowed the company to build up its reserves over the years, with NICL now positioned as one of the most well capitalized insurance companies of the sector. Cession to reinsures has traditionally remained low given the loss absorption capacity possessed by the institution. However, the quality of re-insurance arrangement is sound.
NICL is now looking to reposition its role in the national insurance industry. A host of new products are currently under consideration whilst the company is also planning to venture into co-insurance and inward facultative insurance with private sector companies. Going forward, the successful introduction of new products will be crucial to sustaining business volumes as the company opens itself to market competition. Present level of leverage indicates substantial scope for undertaking the planned expansion in business volumes over the ensuing years. During 2007, particular focus was laid on strengthening the internal audit and IT function. Complete deployment of the IT system expected during the on-going financial year will further strengthen the internal control environment.
For further information on this rating announcement, please contact Mr. Syed Ziauddin Ahmed (Ext: 508) or Ms. Sobia Maqbool (Ext: 506) at 5311861-70 (10 lines) or fax to 5311872-3.
Faheem Ahmad
President & CEO