Lahore, December 07, 2018 (PPI-OT): The rating recognizes Alfalah Insurance’s maintained financial profile, emanating from i) well managed insurance assets/liabilities structure, and ii) investment book that contributes a sizable income stream and provide cushion to the bottom line. Rating also draws comfort from sponsorship of the company. Growth in business volumes of the company is important. The management’s conservative stance, in the form of low risk retention, continues yielding profitability.
Positive momentum in volumes is expected to continue on the back of new products. Health and accident segment intends to fortify its position in the general insurance industry via expanding it’s outreach. The company is expanding penetration in motor segment; building synergies with group bank – Bank Alfalah. Supporting its prudent risk retention policies, Alfalah Insurance has a sound panel of reinsurers with favourable treaty terms.
The rating is dependent on the company’s ability to augment its market position in the competitive landscape, while upholding the underwriting performance. Strengthening of liquid profile is vital along with prudent management of claims and receivables.
For more information, contact:
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425