Pakistan Credit Rating Agency maintains IFS Rating of TPL Direct Insurance Limited

Lahore, December 06, 2012 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has maintained the Insurer Financial Strength (IFS) rating of TPL Direct Insurance Limited (TDIL) at ‘A-‘ (single A minus). The rating denotes strong capacity to meet policyholder and contract obligations. At the same time, risk factors are considered moderate, and the impact of adverse and economic factors is expected to be limited.

The rating reflects TDIL’s business strategy to build a sizable portfolio in a developing market niche – personal lines insurance – wherein the company’s share has increased significantly over the years. The business model takes advantage of advanced technology and comprehensive evaluation of risk prior to underwriting. This is reflected in the low loss ratio which is better than industry. TDIL’s profitability, currently limited due to high business acquisition cost, is expected to improve mainly on account of targeted growth.

The rating is dependent on the company’s ability to expand business volumes while enhancing its liquidity and in turn risk absorption capacity in this course. The company is to demonstrate consistent profitability from underwriting, which remains, apart from financial risk profile, a key consideration for rating elevation.

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