AIRLINK 195.81 Increased By ▲ 2.25 (1.16%)
BOP 10.08 Increased By ▲ 0.13 (1.31%)
CNERGY 7.84 Decreased By ▼ -0.09 (-1.13%)
FCCL 39.87 Decreased By ▼ -0.78 (-1.92%)
FFL 17.05 Increased By ▲ 0.19 (1.13%)
FLYNG 27.20 Decreased By ▼ -0.55 (-1.98%)
HUBC 133.52 Increased By ▲ 0.94 (0.71%)
HUMNL 14.15 Increased By ▲ 0.26 (1.87%)
KEL 4.67 Increased By ▲ 0.07 (1.52%)
KOSM 6.69 Increased By ▲ 0.07 (1.06%)
MLCF 47.16 Decreased By ▼ -0.44 (-0.92%)
OGDC 215.01 Increased By ▲ 1.10 (0.51%)
PACE 6.98 Increased By ▲ 0.05 (0.72%)
PAEL 41.89 Increased By ▲ 0.65 (1.58%)
PIAHCLA 17.20 Increased By ▲ 0.05 (0.29%)
PIBTL 8.53 Increased By ▲ 0.12 (1.43%)
POWER 9.67 Increased By ▲ 0.03 (0.31%)
PPL 184.50 Increased By ▲ 2.15 (1.18%)
PRL 42.90 Increased By ▲ 0.94 (2.24%)
PTC 25.15 Increased By ▲ 0.25 (1%)
SEARL 110.00 Increased By ▲ 3.16 (2.96%)
SILK 1.01 Increased By ▲ 0.02 (2.02%)
SSGC 44.11 Increased By ▲ 4.01 (10%)
SYM 17.77 Increased By ▲ 0.30 (1.72%)
TELE 8.95 Increased By ▲ 0.11 (1.24%)
TPLP 13.00 Increased By ▲ 0.25 (1.96%)
TRG 67.31 Increased By ▲ 0.36 (0.54%)
WAVESAPP 11.67 Increased By ▲ 0.34 (3%)
WTL 1.82 Increased By ▲ 0.03 (1.68%)
YOUW 3.99 Decreased By ▼ -0.08 (-1.97%)
BR100 12,223 Increased By 178.5 (1.48%)
BR30 36,950 Increased By 370.2 (1.01%)
KSE100 115,299 Increased By 1260.7 (1.11%)
KSE30 36,272 Increased By 477.5 (1.33%)

JCR-VIS Credit Rating Company Limited has reaffirmed the Insurer Financial Strength rating of Reliance Insurance Company Limited (RICL) at 'A' (Single A). Outlook on the assigned ratings is 'Positive'. The previous rating action was announced on December 29, 2016.
The rating incorporates sound capitalization level of the company that has strengthened over time on account of profit retention. Overall liquidity profile of the company is also considered sound with positive operating cash flows. Strong reinsurance programme, improving underwriting performance, increasing market share (in terms of both gross and net premiums) and sustainability & quantum of underwriting profits will continue to be key determinants for future direction of rating.
Gross premium of RICL grew by 8.0 per cent with market share of the company improving to 1.85 per cent in 2016. Business mix has remained unchanged with marine, aviation and transport segment representing more than half of gross business followed by fire and property and motor segments. Going forward, business volumes are projected to grow at a steady pace with growth planned in marine and motor business where loss ratios have remained manageable.
Reinsurance panel of the company is considered strong with Swiss Re as the lead re-insurer. Retention level and treaty capacities have witnessed steady increase given anticipated growth in business volumes. Gross and net claims ratios of the company have remained well below the industry average. Moreover, with a decline in expense ratio, underwriting profitability of the company also improved. Given the recent downward trajectory in stock market, the company may need to strengthen its underwriting operations in order to sustain its profitability and capitalization indicators. -PR

Comments

Comments are closed.