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Lahore, June 13, 2016 (PPI-OT):The Pakistan Credit Rating Agency (PACRA) has maintained the Insurer Financial Strength (IFS) rating of SPI Insurance Company Limited (SPI) at “A-” (Single A Minus). The rating denotes a strong capacity to meet policyholder and contract obligations.
The rating reflects SPI’s improving risk profile emanating from growth in business and core profits. This has been made possible by the focused business strategy of the management. The organization takes benefit from synergistic thought at group level – United International Group (UIG) – and replicate the group’s established practices. The outcome is in the form of diversified business composition, growing premium and profitability for the company.
Currently the business mix is skewed towards non-conventional avenues – motor, crop and livestock and health segments. With the successful launch of window takaful, SPI is poised to tap further growth in motor segment. Meanwhile, venturing into micro insurance via partnership with a microfinance bank is on the cards. Although the equity size, and hence liquidity, is relatively small, consistent profitability has and would ensure phased improvement therein.
The rating is dependent upon sustaining the trend in the improving market positioning of the company. As the company grows, liquidity profile needs to be strengthened; herein, attention must be paid to overdue receivables. Meanwhile, improvement in investment management framework is essential.
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