The Pakistan Credit Rating Agency Limited
Press Release
a

Rating Action
Lahore: (17-May-2006)
   

PACRA Assigns ‘A-’ IFS Rating to United Insurance Company of Pakistan Limited (UIC)

 

 
Analyst
Shahzad Saleem
(+92-42-586 9504)
shahzad@pacra.com

 

 

 









 

 

 

 

 

Disclaimer
This press release is transmitted to you for this sole purpose of dissemination through your newspaper/magazine/agency. The press release may be used by you in full or in part without changing the meaning or context thereof but with due credit to PACRA. However, PACRA has the sole right of distribution of its press releases for consideration or otherwise through any media.

  

The Pakistan Credit Rating Agency (PACRA) has assigned an Insurer Financial Strength rating of “A-” (single A minus) to The United Insurance Company of Pakistan Limited (UIC). The rating denotes strong capacity to meet policyholder and contract obligations. At the same time, risk factors are moderate, and the impact of adverse and economic factors is expected to be modest.

UIC’s rating reflects its sound financial base and firm underwriting practices engendering a strong capacity to meet policyholders’ obligations. The rating also takes into account the efficacy of the management’s strategy of focusing on a large number of small-sized clients resulting in low exposure per risk, which is also instrumental in keeping the loss ratio at an exceptionally low level.

About the company: UIC, established in 1959, and listed on the Karachi Stock Exchange the following year, is operating through a network of 70 branches. The network is spread across 36 cities with concentration in the province of Punjab. The family and associates of Mian M. A. Shahid, the President & Chief Executive of the company, own majority share (75%) in the company. They took control of UIC in 1999.

UIC, a non-captive insurance company, has adopted an aggressive growth stance beginning 2004. The company’s strategy is different from most insurance companies in that it focuses on generating business by capitalizing on its extensive branch network through a close liaison with branches of different banks. UIC writes all types of general insurance business.
 
The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity.

PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings.

PACRA's opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.

 

    
tameka foster