The Pakistan Credit Rating Agency Limited
Press Release
a

Rating Action
Lahore: (26-December-2006)
    PACRA Maintains IFS Rating of
New Jubilee Insurance Company Limited (NJI)
 

 
Analyst
Talal Naeem
(+92-42-586 9504)
talal@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 maintained the Insurer Financial Strength (IFS) rating of New Jubilee Insurance Company Limited (NJI) at “AA” (double A). The rating denotes a very strong capacity to meet policyholder and contract obligations. Risk factors are considered modest, and the impact of any adverse business and economic factors is expected to be modest.

The rating reflects NJI’s sound underwriting practices and a strong financial base, which adequately supports the management’s lately adopted accelerated growth stance. At the same time, the rating recognizes the company’s balanced business mix and efforts at further strengthening of risk management systems. This is expected to ensure that the company remains well positioned to meet the challenges of the increasingly competitive environment in the insurance sector.

About the company: NJI, established in 1953 as an insurance company, is listed on Karachi and Lahore stock exchanges of Pakistan. Major shareholding groups of NJI include Aga Khan Development Network and Hashoo group. Mr. Tahir Ahmed, appointed as Chief Executive in July 2005, is a graduate engineer and also a Chartered Insurer in addition to having an MBA degree. He possesses extensive experience in the field of insurance.

The company operates through an extensive network of 24 branches and sales units throughout the country. NJI, with slightly less than 10% market share, has maintained its position as the third largest general insurance company operating in Pakistan with an established franchise.
 
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.