March 6, 2020: Adamjee Insurance Company Limited (AICL) is eyeing geographical diversification in other regions.
The business strategy of the company going forward, is to focused on increasing its market share through expansion of branch network – home and abroad – along with product innovation; retail and micro insurance, revealed a press release issued by Pakistan Credit Rating Agency (PACRA).
The rating agency has maintained Insurer Financial Strength (IFS) rating of AICL at ‘AA+’ with a ‘Stable’ outlook forecast.
The rating reflects the sustained fundamentals of the company. Adamjee Insurance Company Limited has been growing the business profile along with keeping costs under check, hence resulting positive for the core profitability.
The stability in the management team and concerted efforts are the positives. Adamjee Insurance Company Limited continues to enjoy the perk of being only company with operations outside Pakistan.
The company's size able investment portfolio, albeit concentrated in few group companies, continues to supplement its profitability and financial strength.
The group has also consolidated its stake in the Life Assurance company. Furthermore, Adamjee Insurance Company Limited is eyeing geographical diversification in other regions, as well.
The rating incorporates the effect of association of Adamjee Insurance Company Limited with Nishat Group. The company has taken over the remaining 26% stakes of IVM Intersurer from Adamjee Life to make it a wholly owned subsidiary.
The rating depends on the stability and continuous efforts of the management team to execute the business plan. Adamjee Insurance Company Limited should continue to strengthen its market position along with sustained underwriting profits.
With a strengthened claims management system in place, maintaining lower claims turnaround time (TAT) remains vital. The added efficiency in the MIS setup must result into improved proficiency in claims settlement.