December 10, 2018 (MLN): Pakistan Credit Rating Agency (PACRA) has maintained IFS rating of The Universal Insurance Company Limited at ‘A-’ for Long-term, with a stable outlook forecast.
The rating of Universal reflects strong parentage of the company – Bibojee group. The parentage has provided multi-faceted support to the company via injection of capital from different times of the crisis, sustenance in the cleansing period spanning over a couple of years, and captive business.
Underwriting resulted in loss while the bottom line was cushioned from profits of associates. The business strategy envisages tapping captive business with gradual entry into the market business. The road ahead is long, as the company is envisaging new market strategy while enlisting with the banks.
The rating is dependent upon sustained improvement in relative position of the company, augmenting its sustainability, as envisaged by the board and the management. Meanwhile, continued improvement in the financial profile of the company, is also imperative for the rating
