The Pakistan Credit Rating Agency (Pacra) has maintained the Insurer Financial Strength (IFS) rating of East West Insurance Company Limited (EWI) at A- (Single A Minus). The rating denotes strong capacity to meet policyholder and contract obligations.
The rating reflects the company's strong risk absorption capacity emanating from its capital structure supplemented by sound liquidity. However, the company's underwriting performance is under pressure mainly due to increasingly competitive environment making it difficult for EWI to expand its net premium, and continuing increase in operating costs.
The management has put in place a strategy to overcome these constraints. The rating is dependent on the management's success in improving its business volume and translating the benefit in the form of improved underwriting performance, while keeping a stricter control over expenses.-PR
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