Press Release

VIS Reaffirms IFS Rating of Askari General Insurance Company Limited

Karachi, December 27, 2019: VIS Credit Rating Company Limited (VIS) has reaffirmed the Insurer Financial Strength (IFS) rating of Askari General Insurance Company Limited (AGICO) at ‘AA’ (Double A). The IFS rating of ‘AA’ denotes very high capacity of meeting policy holder and contractual obligations. Moreover, the risk is modest, but may vary slightly with possible changes in economic conditions. Outlook on the assigned ratings is ‘Stable’. The previous rating action was announced on December 28, 2018.
Ratings assigned to AGICO derive strength from association with its primary shareholder Army Welfare Trust having presence in various sectors of the economy. Ratings reflect growth in business volumes, improved underwriting performance, conservative investment profile and sound liquidity profile. The rating further incorporates reinsurance arrangements largely with counterparties having sound credit risk profiles, while net retention also remains lower than peers. However, the rating is constrained by high operating and financial leverages; the same have increased on a timeline basis as growth in business volumes has outpaced equity growth where capitalization support to retain risk profile is needed in the growth mode. VIS has noted an increasing trend in the loss ratio on the timeline bais; the same needs to be stringently monitored and rectified. The ratings remain sensitive to growth in business volumes while maintaining sound underwriting quality and strong liquidity.


For further information on this rating announcement, please contact Ms. Maham Qasim at 042-35723411-13 (Ext: 8005) or the undersigned at 021-35311861-70 (201) or email at info@vis.com.pk .



Javed Callea
Advisor

Applicable rating criterion: General Insurance (March 2017)
https://www.vis.com.pk/kc-meth.aspx

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