Press Release
JCR-VIS Reaffirms IFS rating of Alpha Insurance Company Limited
Karachi, December 03, 2010: JCR-VIS Credit Rating Company Limited has reaffirmed the Insurer Financial Strength Rating of Alpha Insurance Company Limited (AICL) at ‘A’ (Single A). Outlook on the assigned rating is ‘Stable’.
Rating draws strength from the significant stake of The State Life Insurance Corporation of Pakistan (SLIC) - the largest life insurance company in the public sector, in AICL. In addition to fresh capital injection in the company in 2009, increased oversight by SLIC has also been observed lately and SLIC has granted permission to the company to mobilize business from its extensive field force.
The company has taken several long-due initiatives, with greater emphasis on improving internal controls and deployment of IT system. There is also enhanced focus on marketing activities. The management expects impact of these developments to translate into financial results over the medium to long term.
Business volumes continued to decline in 2009 and high claims ratio undermined profitability. While underwriting losses have persisted, there has been some growth in premium written in recent months. A larger portfolio is expected to enable the company to absorb current level of administrative overheads.
Capitalization indicators of the company at present levels are considered sound; however continuing trend of losses may adversely impact the same. The company has proportional treaties for major business lines, led by a strong re-insurer.
For further information on this rating announcement, please contact Mr. Syed Ziauddin Ahmed (Ext. 508) and Ms. Sobia Maqbool, CFA (Ext. 506) at 021-35311861-70 (10 lines) or fax to 021-35311873.
Faheem Ahmad
President & CEO