The Pakistan Credit Rating Agency (PACRA) has maintained Insurer Financial Strength (IFS) rating of Adamjee Insurance Company Limited (AICL) at "AA" (Double A). The rating denotes a very strong capacity to meet policyholder and contract obligations, and risk factors are considered modest.
The rating reflects AICL's ability to sustain its leading position in the insurance sector despite intense competition and subdued economic environment. However, the company's underwriting margins remain thin. The management, while identifying new growth avenues, is rationalising its cost structure to improve core performance. The rating incorporates the company's strong risk absorption capacity emanating from robust financial profile and ample liquidity.
The company's sizable and high quality investment portfolio continues to supplement its financial strength and profitability. Meanwhile, synergic benefits arising from the company's association with Nishat Group remains a key consideration. AICL is the leading non-life insurance company in Pakistan with around 28 percent market share. Incorporated in 1960, AICL is listed on all three stock exchanges. With its headquarters in Karachi, the company operates a network of 42 branches in Pakistan and one branch in UAE (Dubai). AICL has a diversified customer base including banks, industrial units and corporate entities. It offers a wide range of insurance products including motor, cargo, engineering, fire, terrorism, crop and health insurance.-PR