JCR-VIS has reaffirmed the ratings of The Universal Insurance Company Limited at BBB+ with a 'Stable' outlook. The sponsors' recent efforts to improve the capitalisation of the company have increased its paid-up-capital by Rs 30 million during FY2004.
The business level has increased at a CAGR of 20.72 percent from FY2002 to HY2005 and the management has maintained its level of underwriting profitability.
JCR-VIS believes that the quality of re-insurers and treaty terms are also adequate.
Income contribution from investment management activity is low and the company will benefit from developing a sizeable and diversified investment portfolio.
Rationalisation of staff strength at lower cadres will also serve to reduce overheads. The company expects to be able to address these issues during the current year and significantly improve its information management systems.