JCR-VIS Credit Rating Company Limited has assigned an Insurer Financial Strength (IFS) rating of 'B' (single B) to the Pakistan General Insurance Company Limited (PGICL). According to a JCR-VIS press release, the outlook on the rating is stable. PGICL has been in operation since 1947, having countrywide operations.
The management has been making efforts to improve its re-insurer profile and business volume. Efforts have also been made in recovery of receivables, though the proportion of illiquid and non-earning assets is still high.
While underwriting expense ratio remains high and future profitability and cash flows may also be affected if contingent liabilities become payable, the release stated.