IGI Life Insurance’s market share gets slightly diluted owing to change in business strategy: PACRA

December 27, 2018 (MLN): Pakistan Credit Rating Agency has maintained IFS rating of IGI Life Insurance Limited at ‘A+’ for long-term, with a stable outlook forecast.

IGI Life has been a step towards holistic presence in insurance industry - General as well as life. This is unlocking synergistic benefits. The market share of the company has slightly diluted, owing to change in the business strategy: to reduce dependence on the single premium and shift towards the regular premium.

According to the press release issued by PACRA, the agency network of the company has continued to expand, whereas, bancassurance arrangements with some of the leading banks of the country are yielding benefits. The company has a diverse product slate, targeting all segments of the market.

Going forward, IGI Life aims to further penetrate the market, on the back of expansion in branch network and gradually building up portfolio through its new product 'Vitality'. The company's association with Packages Group engenders sound governance framework remains a key rating factor.

The rating is dependent on sustained improvement in business and financial risk profile of the company in line with its relative positioning within the industry. At the same time, liquidity profile should continue to cushion the policyholder's liabilities. The performance of company's new product 'Vitality' remains crucial.

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