The Pakistan Credit Rating Agency Limited
Press Release
a

Rating Action
Lahore: (23-June-2006)
   

PACRA Upgrades IFS Rating of
East West Insurance Company Limited (EWI)
 

 
Analyst
Moin Khalid
(+92-42-586 9504)
moin@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 upgraded the Insurer Financial Strength (IFS) rating of East West Insurance Company Limited to “A-” (Single A Minus). The rating denotes strong capacity to meet policyholder and contract obligations.

The rating reflects the strengthened financial base mainly as a result of substantial increase in equity through retention of one off gains realized on divestment of a major equity investment. At the same time, the rating also recognizes the improving performance prospects of the company from core underwriting operations, as well as contribution of investment income. While the investment income is expected to be boosted by increase in the size of investment portfolio, deployed in debt and equity securities, the management’s concerted efforts for controlling operating costs, and plans to pursue a moderate growth in business volumes are likely to result in improving underwriting performance.

About the company: EWI commenced commercial operations as a general insurance company in 1983 and is currently listed on the Karachi Stock Exchange. The shareholding in the company is effectively held by Yunus family. During 2005, Mian Mehboob Ahmad, Chief Justice (R) of Lahore High Court, also having extensive exposure in the insurance sector, has been appointed as the Chairman of BoD, which is expected to improve the quality of strategic policy making. The remaining members of the BoD, including the CEO, belong to Yunus family. The other major concern owned by the family is the Metropolitan Life Assurance Co. of Pakistan Ltd.

The company writes various classes of general insurance business, and is the pioneer in the field of livestock insurance and recently extended coverage to loans against crops. The company has an extensive network of around 50 branches and agency offices spread across the country. With its head office in Karachi, the operations of the company are managed by three principal offices in Karachi, Lahore and Islamabad.
 
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.

 

    
bring me the head of alfredo garcia