Press Release
JCR-VIS Upgrades IFS Rating of UBL Insurers Limited to A
Karachi, November 16, 2010: JCR-VIS Credit Rating Company Limited has upgraded the Insurer Financial Strength rating of UBL Insurers Limited (UIL) from ‘A-’ (Single A-) to ‘A’ (Single A). Outlook on the assigned rating is ‘Stable’.
The rating upgrade incorporates continued sponsor support as evident by recent commitment to inject fresh capital of Rs. 300m by end of 2010; which is further to the rights issue of Rs. 200m in 2009. In addition to enhancing the institution’s loss absorption capacity, the increase in capital is expected to improve the liquidity profile and enhance investment income.
The company has recorded consistent growth in business volume since inception, with perils under fire, motor and bankers’ blanket (BB) cover comprising the bulk of risks underwritten. In 2009, the incidence of claims in these segments was high, as reflected by the results from underwriting operations. Improved performance has been witnessed in the on-going year as the management has become more selective in its acceptance of risks. Further, measures taken in regards to the BB segment, which represents a sizable proportion of business mix, are expected to have positive impact on results. Efforts have also been undertaken by the management to streamline operational costs, which have already begun to yield positive results.
Investment policy of the company has been revised on a more conservative note, which is expected to minimize the impact of any adverse movement in stock market and interest rates.
For further information on this rating announcement, please contact Syed Ziauddin Ahmed (Ext: 508) or Ms. Sobia Maqbool, CFA (Ext: 506) at 021-35311861-70 or fax to 021-35311872-3.
Faheem Ahmad
President & CEO