December 19, 2018 (MLN): Pakistan Credit Rating Agency (PACRA) has maintained IFS rating of General Insurance Limited at ‘AA’ for long-term, with a stable outlook forecast.
As per the press release issued by PACRA, the rating of IGI General Insurance Limited draws comfort from the growing business volume under the stewardship of an able team.
The composition of the book is well balanced with almost equal proportion emanating from the direct business. In this, the business relationships of the group also play a pivotal role, whereby a number of multi-national companies obtain insurance coverage from IGI.
Improvement in the IT infrastructure is helping the company in bringing efficiency – notably in claims management. Underwriting profits improved with contributions from both premiums side as well as claims.
Post de-merger, the parent company, IGI Holdings Limited has injected a sizeable capital into the company. This is preserved mostly as in the form of liquid investments.
The assigned rating also takes into account its association with Packages Group and comfort is drawn from its sound governance practices of the group.
The rating remains dependent on the management's ability to strengthen its market position in a competitive landscape while ensuring underwriting profitability. The liquid investment book need to be preserved and indeed improved in line with the growing business volumes.
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