The Pakistan Credit Rating Agency (PACRA) has upgraded the IFS rating of The United Insurance Company of Pakistan Limited (UIC) to “AA-“(Double A Minus). The rating denotes very strong capacity to meet policyholder and contract obligations. Risk factors are Modest, and the impact of any adverse business and economic factors is expected to be very small.
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’s business plan predominantly focuses on widespread small sized business volumes through an intensives 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 real time IT platform.
The Rating is dependent on management’s ability to successfully execute its business strategy of growth, while preserving underwriting profitability. Meanwhile, Strengthening of investment book, enhanced contribution from the investment income and efficiency in acquisition cost with economies of scale are important.
UIC was established in 1959, is listed on the Karachi Stock Exchange. It is operating through an extensive network of more than hundreds of branches concentrated in the North region. The Company is part of United International Group (UIG) which has interests in micro finance banking, another insurance company, farming, vehicle tracking, insurance brokerage international and first registered third party administrator company for Health Claims in Pakistan. Majority ownership in the Company is held by Mian M.A. Shahid (Group Chairman UIG) through group companies and associates.
The overall control of the company vests in seven members BoD, Comprising two executive directors (including CEO), Non-executive directors, having majority shareholding, have been associated with the board for than a decade and have gained insurance experience along with the company’s growth. Mr. Rahat Sadiq has assumed the position of CEO. Mr. Rahat, a chartered insurer from UK, bears sound insight to the insurance industry.
Speaking at the occasion, Mian Shahid said that the credit of the upgrade goes to the entire staff of the company. We will continue to play our positive role in the national developement, he said. Mian Shahid said that we will continue to provide better services to the customers to their full satisfaction.