Press Release
JCR-VIS Upgrades IFS Rating of ACE Insurance Limited, Pakistan
Karachi, October 17, 2014: JCR-VIS Credit Rating Company Limited (JCR-VIS) has upgraded the Insurer Financial Strength rating of ACE Insurance Limited, Pakistan (ACE Pakistan) from ‘AA-’ (Double A Minus) to ‘AA’ (Double A). Outlook on the assigned rating is ‘Stable’.
The upgrade takes into account the improving financial risk profile of the ACE Group (Group), with which the company is associated. The Group is one of the world’s largest Multiline Property and Casualty insurers with operations in 54 countries.
ACE Pakistan benefits from the Group’s support in terms of underwriting expertise and reinsurance coverage, providing ACE Pakistan a competitive advantage. The company has one of the largest reinsurance treaty capacities in Pakistan, with low per risk loss retention. Reinsurance treaties also provide coverage for risks located outside Pakistan, enabling ACE Pakistan to insure risks in overseas markets; this provides potential for geographical risk diversification.
The rating incorporates ACE Pakistan’s strong risk adjusted capitalization level as evident from low net risk retention, conservative investment profile, sound liquidity indicators and a stable & professional management team. Business mix of ACE Pakistan is led by the Fire & Property damage segment. The company has the technical capacity to underwrite specialized risks. Premium written by the company witnessed a slight decline in 2013; growth in business volumes is evident in the on-going year, with the company expected to achieve full year target of Rs. 720m.
For further information on this rating announcement, please contact Mr. Abdul Rahim, ACII (Ext: 508) or Ms. Sobia Maqbool, CFA (Ext: 604) at (021) 35311861-70 (10 lines) or fax to (021) 35311873.
Javed Callea
Advisor
Applicable rating criterion: Methodology: General Insurance (Nov 2003)