Press Release

VIS Reaffirms IFS Rating of The United Insurance Company of Pakistan Limited

Karachi, June 10, 2020: VIS Credit Rating Company Limited (VIS) has reaffirmed the Insurer Financial Strength (IFS) rating of The United Insurance Company of Pakistan Limited (UICPL) at ‘AA-’ (Double A Minus). 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 March 22, 2019.

The assigned rating takes into account the sound business profile of the United Group. The group has business interests in insurance, microfinance, information technology, dairy and vehicle tracking. UICPL being the flagship company of the group is a significant player among the lead general insurers, it also has an established and growing takaful segment of the business; however, the current economic dynamics may impact the business volumes of the insurance industry going forward. Rating derives comfort from sustained business volumes and improvement in underwriting performance stemming from favorable loss ratio. The rating further incorporates reinsurance arrangements largely with counterparties having sound credit risk profiles with majority reinsurers rated in category ‘A’ or higher.

We understand the company is undertaking actions to further improve its performance parameters, the same would be reviewed on a timeline basis by VIS going forward. The ratings are dependent upon the aforesaid achievements in performance indicators along with expected turnaround in the strategic investment in microfinance bank during the rating horizon.

For further information on this rating announcement, please contact Ms. Maham Qasim (042-35723411-13, Ext. 8005) and/or the undersigned at 021-35311861-66 (Ext. 201) or email at info@vis.com.pk.


Faryal Ahmad Faheem
Deputy CEO


Applicable rating criterion: General Insurance (November 2019)
https://s3-us-west-2.amazonaws.com/backupsqlvis/docs/Meth-GenInsurance201911.pdf

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.VIS , the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report.VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2020 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .