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PACRA Maintains IFS Rating of United Insurance Company of Pakistan Ltd

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December 26, 2018 (MLN): PACRA has maintained IFS ratings of the United Insurance Company of Pakistan Limited at ‘AA-’ for long-term, with a stable outlook forecast.

According to the press release issued by the rating agency, the rating of United Insurance takes into account continued performance of the company reflected by the growing business; the company is regarded as the fourth largest player in terms of volume in the industry.

The profitability is healthy though there is slight downward adjustment in the underwriting income on comparative period basis; requiring management's attention in this regard.

Moreover, the business is emanating from all segments of insurance, representing a strength; the main contributor is the miscellaneous segment. The company has continued to generate liquidity; yet a major portion has been placed into a strategic investment.

On a standalone basis, the liquidity is adequate yet the relative positioning requires significant improvement. Apna Bank has traveled a long distance; getting closer to sustainable profitability, which is essential to the sustained risk profile of the group.

The ratings are dependent on sustained improvement in the liquidity position of the company. The profitability indicators need to hold in future in wake of rise in business volume. Improving the customer interface including claims settlement process is important. Harnessing the control environment is considered essential.

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Posted on: 2018-12-26T17:07:00+05:00

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