Press Release
JCR-VIS Maintains IFS Rating of Alpha Insurance Company Limited with Stable Outlook
Karachi, September 30, 2013: JCR-VIS Credit Rating Company Limited (JCR-VIS) has maintained the Insurer Financial Strength Rating of Alpha Insurance Company Limited at ‘A’ (Single A). Outlook on the assigned rating has been revised from ‘Negative’ to ‘Stable’.
The assigned rating incorporates the improved risk adjusted capitalization of AICL as evident in its growing equity base and declining underwriting leverage ratios. Rating also reflects the adequate liquidity profile and improved claims performance of the company. Demonstrated financial support of the primary sponsor, State Life Insurance Corporation of Pakistan (SLIC) which is owned by the Government of Pakistan, provides strength to the assessment of overall risk profile of the institution.
Growth in business volumes has been witnessed in 2012 and in 1H13 which has largely been driven by credit and surety business. Overall premium base however still remains small. The management plans to negotiate larger treaty capacities for select business segments to enhance its ability to do business. While claims performance has showcased improvement, trend in underwriting losses has persisted on account of a high expense structure. Further growth in business volumes and rationalization of expense base may be needed for improvement in underwriting performance. Despite underwriting losses, overall profitability of the company has depicted significant improvement owing to favorable investment performance.
For further information on this rating announcement, please contact Mr. Abdul Rahim (Ext: 508) or Ms. Sobia Maqbool, CFA (Ext: 604) at 021-35311861-71 or fax to 021-35311872-3.
Jamal Abbas Zaidi
Deputy CEO