June 10, 2020 (PPI-OT)

Following is the text of press release issued by VIS Credit Rating Company Limited

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VIS Credit Rating Company Limited (VIS) has reaffirmed the Insurer Financial Strength (IFS) rating of The United Insurance Company of Pakistan Limited (UICPL) at 'AA-' (Double A Minus). The IFS rating of 'AA-' denotes very high capacity of meeting policy holder and contractual obligations. Moreover, the risk is modest, but may vary slightly with possible changes in economic conditions. Outlook on the assigned ratings is 'Stable'. The previous rating action was announced on March 22, 2019.

The assigned rating takes into account the sound business profile of the United Group. The group has business interests in insurance, microfinance, information technology, dairy and vehicle tracking. UICPL being the flagship company of the group is a significant player among the lead general insurers, it also has an established and growing takaful segment of the business; however, the current economic dynamics may impact the business volumes of the insurance industry going forward.

Rating derives comfort from sustained business volumes and improvement in underwriting performance stemming from favourable loss ratio. The rating further incorporates reinsurance arrangements largely with counterparties having sound credit risk profiles with majority reinsurers rated in category 'A' or higher.

We understand the company is undertaking actions to further improve its performance parameters, the same would be reviewed on a timeline basis by VIS going forward. The ratings are dependent upon the aforesaid achievements in performance indicators along with expected turnaround in the strategic investment in microfinance bank during the rating horizon.

For more information, contact:Director Compliance and Rating Analytics,VIS Credit Rating Company LimitedVIS House, 128/C, 25th Lane off Khayaban-e-Ittehad,Phase VII, DHA, Karachi, PakistanTel: +92-21-35311861-72Fax: +92-21-35311873Email: bilal@jcrvis.com.pkWebsite: https://www.vis.com.pk/

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© Pakistan Press International, source Asianet-Pakistan