PACRA ASSIGNS "A" IFS RATING TO

MUSLIM INSURANCE COMPANY LIMITED

 

Lahore: September 25, 2002

The Pakistan Credit Rating Agency (PACRA) has assigned an IFS rating of "A" (Single A) to Muslim Insurance Company Limited. 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 small.

The company is the oldest insurance company in Pakistan and ranks among the ten largest non-life insurance companies in the country, with respect to premium volume. While assigning the rating, PACRA has recognized the company's financial strength evidenced by a strong financial base and solvency margin - a result of improving performance and retention of profits over the years. The rating also takes into account limited exposure in the high-risk motor insurance segment as compared to peers, leading to much lower loss ratios, which has resulted in consistently profitable underwriting operations and contributed to a high return on equity. The company's risk management policies and financial profile have enabled it to retain its long-standing reinsurance arrangements with international reinsurers of high standing.