The Pakistan Credit Rating Agency (Pacra) has assigned an Insurer Financial Strength (IFS) rating of "A-" (Single A minus) to Reliance Insurance Company Limited (RIC). The rating denotes strong capacity to meet policyholder and contract obligations.
The rating reflects RIC's strong capacity to meet policyholders obligations as indicated by its sound financial base and solvency ratios. The performance of the investment portfolio is improving both in terms of return and contribution to total revenue. The company has been following a growth-oriented strategy in recent years while maintaining good underwriting performance.
RIC maintains reinsurance treaties with various reputed international reinsurers, mostly rated 'A' or above. The management is making concerted efforts to control its operational costs. As regards its investment portfolio, constituting both debt and equity securities, RIC follows a policy of long-term holding with main focus on earnings and liquidity of the portfolio.-PR