Credit Rating Company Limited (JCR-VIS) has upgraded the Insurer Financial Strength (IFS) rating of The Pakistan General Insurance Company Limited (PGICL) from 'BB+' (double B Plus) to 'BBB' (Triple B). Outlook on the rating is 'stable', says a press release.
The upgrade takes into account the consistent growth in premium posted by PGICL. Strong underwriting performance was exhibited in a contained claims ratio and underwriting expense ratio. Motor portfolio, which is generally prone to higher rate of claims, has been maintained within prudent limits. Also adding to improved performance is the company's decision to optimise its network size by decreasing the number of branches.
The company has a diverse panel of re-insurers, with Labuan Re being the lead reinsurer. Treaty limits are also adequate, given the size of risks underwritten by the company. Insurance debt had been maintained at low levels, though there was some increase at the close of FY2007. Investment income has historically provided little support to profitability. -PR
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