Press Release

JCR-VIS Assigns Positive Outlook to IFS Rating of New Jubilee Insurance Company Limited
 

buy abortion pill online

cytotec abortion pill buy online williamgonzalez.me
Karachi, January 3, 2011: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has maintained the Insurer Financial Strength (IFS) Rating of New Jubilee Insurance Company Limited (NJI) at ‘AA’ (Double A). Outlook on the assigned rating has been revised from ‘Stable’ to ‘Positive’.

NJI has maintained its position as the third largest private sector company in the general insurance market with a growing market share, which stood at 12.5% at end-9M10. The company has been able to outpace the industry in terms of growth in premium on account of significant expansion in non-conventional product lines.

Loss norms of overall business written by the company have been maintained and compare favorably to larger players in the sector. Efforts have been made by the management to reduce losses in various segments by strengthening the risk assessment process. Underwriting results for 2009 remained positive and were almost at par with 2008 with similar trend continuing in 1H10 also. Flood related losses reported in third quarter have had an adverse impact on results from underwriting operations. Overall profitability has however received support from investment income with a profit of Rs. 220m reported for the nine month period ended September 2010.

In addition to generating positive cash flows from operating activities, the company’s investment portfolio also provides strong support in terms of liquidity. With almost two-thirds of the portfolio invested in low risk avenues, the returns from investment portfolio are expected to maintain some degree of stability. Furthermore, market value of equities is considerably higher than cost, providing cushion in case of downward movement in the KSE-100 index.

Ratings also derive strength from the strong capitalization indicators maintained by the company. Moreover, reinsurance panels for various business lines have largely remained stable and treaty capacities support growth in business operations, with low priority levels limiting the amount of single party claims falling on net account. Top management team has remained stable and comprises seasoned professionals.

For further information on this rating announcement, please contact Syed Ziauddin Ahmed (Ext: 508) or Ms. Sobia Maqbool, CFA (Ext: 506) at 35311861-71 (10 lines) or fax to 35311873.



Faheem Ahmad
President & CEO

________________________________________________________________________________________________________________________________
Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited VIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report.VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2011 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.

JCR-VIS Credit Rating Company Limited