Pakistan Credit Rating Agency Limited maintains Insurer Financial Strength Rating of Habib Insurance Company Limited

Lahore, January 07, 2016 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has maintained the Insurer Financial Strength (IFS) rating of Habib Insurance Company Limited (HIC) at “A+” (Single A plus). The rating has “Positive Outlook”. The rating denotes strong capacity to meet policyholder and contract obligations.

The rating reflects HIC’s sustained risk profile. The rating incorporates the Company’s association with astute sponsors – Habib Family. This, while providing stability to revenue stream in the form of captive business, establishes a sound governance framework. The rating takes into account relatively stabilized management team and continued prudent underwriting practice followed by the company.

The company’s underwriting profitability improves while the operational expenses remained under check. HIC maintains a reasonable, fundamentally strong and diverse investment portfolio, which not only provides risk absorption capacity, but also supports profitability.

The rating is dependent on strengthening of company’s relative position in the market. In addition, underwriting profitability is important. The company has realigned its organisational structure with clarity of roles. Given combination of strategic and trading stocks in its investment book, HIC should continue to manage the mix to keep liquidity at strong level.

For more information, contact:
Hammad Rashid
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