The Pakistan Credit Rating Agency (PACRA) has maintained the IFS rating of The United Insurance Company (UIC) of Pakistan Limited at "A" (Single A).
The rating denotes strong capacity to meet policyholder and contract obligations. Risk factors are moderate, and the impact of any adverse business and economic factors is expected to be small.
According to a press release issued here on Thursday, the rating reflects UIC's strong risk absorption capacity emanating from a robust financial base that adequately supports the company's high growth stance. The company's business plan predominantly focuses on wide-spread small sized business volumes. Although this has led to high business acquisition cost, the benefits are accrued in the form of low loss ratio, engendering superior underwriting performance compared to peers. The rating incorporates improved control environment supplemented by real time IT platform.
The rating is dependent on management's ability to successfully execute its business strategy of diversification and growth, while preserving underwriting profitability. A more structured approach towards claim handling, thereby bringing clarity as to the claims processing and reporting mechanism, would remain critical for the rating. Meanwhile, strengthening of governance framework, bringing further oversight to the corporate strategy, and compliance to the regularity matters are important.
At the occasion, Mian Shahid, Chairman said that UIC will continue to serve masses and boost insurance industry as well as its image in country and abroad.
He said that insurance industry is vital part of the economy which needs further support of the government and masses as well. The insurance industry should further efforts to serve masses through corporate social responsibility initiatives, said Mian Shahid.
He said that we are expanding our network by acquiring other companies and a microfinance bank.