Pakistan Credit Rating Agency maintains IFS rating of Alfalah Insurance Company Limited

Lahore, September 27, 2012 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has maintained the IFS rating of Alfalah Insurance Company Limited (AFIC) at “A” (Single A). The rating denotes strong capacity to meet policyholder and contract obligations. Risk factors are moderate, and the impact of any adverse business and economic factors is expected to be small.

The rating takes into account sustainable underwriting performance of the company. The company’s conservative business strategy, in the form of low risk retention, is expected to continue yielding profitability despite continuing volatile socio-economic environment. AFIC’s association with Abu Dhabi group provides support to the company mainly in the form of captive business, adding stability to its revenue stream.

The company’s growing investment book is a source of comfort which has been contributing a sizable stream of income to AFIC’s bottom-line. The rating recognizes AFIC’s sustainable improvement in financial profile, notably emanating from internal generation of profits.

The rating is dependent on the management’s ability to ensure sustainable GPW growth, while enhancing the portfolio of non-captive business. Meanwhile, risk appetite of the reviewed investment policy should commensurate with overall risk profile of the entity. At the same time, material deterioration in underwriting profitability, adversely impacting the risk absorption capacity, would have negative implications for the rating.

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