March 6, 2019 (MLN): Pakistan Credit Rating Agency has maintained IFS ratings of Adamjee Insurance Company Limited at ‘AA+’, with a stable outlook forecast.
The rating reflects the sustained fundamentals of the company. 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 perks of being the 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.
The business strategy, going forward, is focused on increasing its market share through expansion of branch network – home and abroad – along with product innovation; retail and micro insurance. The group has also consolidated its stake in the Life Assurance Company.
Furthermore, AICL is eyeing geographical diversification in other regions, as well. The rating incorporates the effect of association of AICL with Nishat Group.
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.