Pakistan Credit Rating Agency (Pacra) has assigned "positive outlook" to the Insurer Financial Strength (IFS) rating of "AA" (Double A) of New Jubilee Insurance Company Limited. The rating denotes a very strong capacity to meet policyholder and contract obligations. Risk factors as well as the impact of any adverse business and economic factors is expected to be modest.
The rating also reflects company's well-designed risk management system, facilitating it in sustaining sound underwriting practices despite occasional shocks. It also takes into account sound equity base and sufficient liquidity, engendering strong risk absorption capacity.
Pacra's rating recognises management's continuing efforts of exploring relatively untapped segments through innovative products, also reflected in its relatively more diverse premium mix compared to peers. The ability of key sponsor of the company, AKDN group, to foster synergies amongst its financial institutions operating in Pakistan - HBL, NM, and NM Life - is also a key rating factor for the company.-PR