Press Release

JCR-VIS upgrades IFS rating of Askari General Insurance Company Limited

Karachi, December 28, 2018: JCR-VIS Credit Rating Company Limited (JCR-VIS) has upgraded the Insurer Financial Strength (IFS) rating of Askari General Insurance Company Limited (AGICO) from ‘AA-’ (Double A - Minus) to ‘AA’ (Double A). 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 December 27, 2017.

Ratings assigned to AGICO derive strength from association with its primary shareholder Army Welfare Trust (AWT) having presence in various sectors of the economy. Ratings also take into account growth in business volumes, consistent improvement in underwriting performance, sound liquidity profile and largely maintained loss absorption capacity. Credit risk emanating from reinsurance panel selection remains sound with majority reinsurers rated in category ‘A’ or higher. Capitalization levels of the company have improved over time on the back of internal capital generation. Moreover, AGICO is considered sound from solvency point of view as the company has adequate cushion in terms of total admissible assets over its liabilities. The rating is dependent on increasing business volumes while maintaining sound underwriting quality and strong liquidity.

For further information on this rating announcement, please contact the undersigned at 021-35311861-70 or Mr. Maimoon Rasheed at 042-35723411-13.

Jamal Abbas Zaidi
Applicable rating criterion: General Insurance (March 2017)

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 not an NRSRO and its credit ratings are not NRSRO credit ratings.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 2018 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