Press Release
JCR-VIS assigns initial IFS rating to The Cooperative Insurance Society of Pakistan Limited
Karachi, June 24, 2011: JCR-VIS Credit Rating Company Limited (JCR-VIS) has assigned an initial Insurer Financial Strength (IFS) rating of ‘B+’ (Single B plus) to The Cooperative Insurance Society of Pakistan Limited (CISPL). The outlook on the rating is ‘Stable’.
The society features low and declining business volumes. Presently, CISPL’s business size is not adequate to cover its organizational cost, thereby posting underwriting losses on books. However, the bottom line remains nominally positive on account of dividend income support from the equity portfolio and rental yield on the head office building; the company has a sizable property on a prime location that is its most significant asset. The society has 100% reinsurance cover from Pakistan Reinsurance Company Limited (PRCL); in majority owned by Government of Pakistan. While the management is endeavoring to curtail expenses, the proposed internal audit committee may help in improving controls. JCR-VIS will closely monitor the progress in business procurement reaching levels to sustain operational cost while maintaining adequate underwriting quality.
For further information on this rating announcement, please contact Syed Ziauddin Ahmed (Ext: 508) or Ms. Sabeen Saleem (Ext: 510) at 021-35311861-70 (10 lines) or fax to 021-35311872-73.
Jamal Abbas Zaidi
Advisor