The Pakistan Credit Rating Agency (PACRA) has maintained the IFS rating of The United Insurance Company Limited (UIC) at “A+”( Single A Plus). The rating denotes strong capacity of the company to meet policyholder and contract obligations.
The rating reflects UIC’s strong risk absorption capacity emanating from a robust liquidity profile that amply supports contingencies towards the policy holders. The company is led by strategic vision of the chairman of United International Group – Mian M. A. Shahid, an insurance veteran. The strategy predominantly focuses on wide-spread small sized business volumes through an intensive marketing force. Although this has led to high business acquisition cost on a comparative scale, the benefits are accrued in the form of low loss ratio, engendering superior underwriting performance compared to peers. The rating incorporates improved control environment supplemented by an improving IT platform and a documented investment policy statement.
The rating is dependent upon the company’s ability to sustain its market position while ensuring stable underwriting performance. The smooth implementation of investment policy framework and achievement of targeted cost efficiency are important. Any material dilution in the risk absorption capacity would impact the rating.