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Lahore, August 28, 2019 (PPI-OT): The rating reflects adequate risk absorption capacity – strengthened by capital injections – of the company. However, in more recent years, intense competition has resulted in pressure on the profitability of the sector. Furthermore, the management follows a conservative stance (high liquidity, low-risk philosophy) for its investment book. The management needs to continue efforts in the wake of intensive competition from window takaful sector. The rating incorporates the association of the company with Qatar based investors., having presence in the life sector, strengthening the brand. Increase in business volume and takaful presence needs improvement hence therein.
The rating is dependent on the management’s ability to cohesively execute the business plan. Furthermore, improvement in market share and underwriting profitability are considered vital. Meanwhile, prudent management of premium receivables from corporate customers is essential. Also, implementation of real time IT infrastructure along with an upgraded MIS should, among others, strengthen the claims management system.
For more information, contact:
Analyst
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com