December 10, 2018 (MLN): Pakistan Credit Rating Agency (PACRA) has maintained IFS rating of Adamjee Insurance Company Limited at ‘AA+’ for Long-term, with a stable outlook forecast.
According to the credit rating agency, the rating reflects the sustained fundamentals of the company as well as the effect of its association with Nishat Group. AICL has been growing the business profile along with keeping costs under check, hence resulting positive for the core profitability.
AICL continues to enjoy the perk of being only company with operations outside Pakistan. The company's sizeable investment portfolio, albeit concentrated in few group companies, continues to supplement its profitability and financial strength.
Going forward, the business strategy is focused on increasing its market share through expansion of branch network – home and abroad – along with product innovation; retail and micro insurance. Furthermore, AICL is eyeing geographical diversification in other regions as well.
The rating depends on the stability and continuous efforts of the management team to execute the business plan. AICL 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.
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