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Lahore, June 14, 2012 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has maintained the IFS rating of Habib Insurance Company Limited (HIC) at “A+” (Single A plus). 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 outlook on the rating is positive.
The rating reflects HIC’s strong risk absorption capacity, emanating from a robust financial profile and sound liquidity position. Meanwhile, the rating incorporates HIC’s association with very astute sponsors – Habib Family. This, while adding stability to revenue stream in the form of captive business, boosts sound governance framework.
There has been weakening in the underwriting performance; although over the long run results are good, these continue to lag behind peers. HIC has sizeable, fundamentally strong and diverse investment book, which, while lending risk absorption capacity, supports the profitability.
The rating is dependent upon sustained positioning of the company in the industry with focus on improvement in the underwriting performance trend. Meanwhile, full scale benefits of enhanced technology platform would be a key essential. However, any material deterioration in underwriting profitability and/or investment portfolio, significantly 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