Lahore, December 07, 2018 (PPI-OT): The rating reflects Excel’s emerging position in the general insurance industry. This is supported by a sizeable and duly compliant capital structure, as a result of equity injection. The equity of the company is deployed in liquid avenues. The Investment Policy Statement envisages pre-dominant exposure towards equities (Large, mid and small) with an adequate balance kept in fixed income avenues.
The management is confident as to the sustained risk profiling of the investment book, based on historical performance. In times of stress, this remains a challenge. The team has been instituted with the mandate to grow business. The envisaged strategy is conservative with gradual build-up of business after the enlistment with banks. This is led by the astute sponsors, having good understanding of the risks involved.
The rating is dependent upon execution of envisaged business strategy: generation of business volume along with profitability from the core business is important. Meanwhile, liquidity and overall financial risk metrics must be adhered to.
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