Press Release
JCR-VIS reaffirms IFS rating of UBL Insurers Limited at A-
Karachi, October 14, 2008: JCR-VIS Credit Rating Company Limited has reaffirmed the Insurer Financial Strength rating of UBL Insurers Limited (UIL) at ‘A-’ (Single A Minus). Outlook on the assigned rating is ‘Stable’.
Having completed its first full year of operations in FY2007, UIL has been able to sustain strong business momentum in the on-going year. In the backdrop of uncertain economic conditions, there is a sector-wide risk of higher claims and rising levels of insurance debt. The latter’s impact may be more pronounced in case of smaller companies which rely on co-insurance business in major segments of the underwriting portfolio. The management of UIL has placed considerable focus on generating direct business in the on-going year.
Underwriting operations of UIL are supported by a diversified panel of reinsurers including Swiss Re in lead on the motor portfolio and SCOR Re in other major business segments. The company also benefits from the franchise value of its major sponsor United Bank Limited for generating business. Performance has hitherto been at par with projected targets. The motor sector, albeit still the predominant driver of business volume has declined in proportion in the on-going year both on account of slowdown in credit off-take through leasing channels, and the management’s conscious decision to induce growth in other business segments.
JCR-VIS will continue to monitor the company’s progress in diversifying business mix and the consequent impact on the financial strength of the company.
For further information on this rating announcement, please contact Ms. Sobia Maqbool (Ext: 506) or Syed Ziauddin Ahmed (Ext: 508) at 5311861-70 (10 lines) or fax to 5311872-3.
Faheem Ahmad
President & CEO