Press Release

VIS Reaffirms IFS Rating of Askari General Insurance Company Limited
 

Karachi, December 27, 2019: VIS Credit Rating Company Limited (VIS) has reaffirmed the Insurer Financial Strength (IFS) rating of Askari General Insurance Company Limited (AGICO) at ‘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 28, 2018.
Ratings assigned to AGICO derive strength from association with its primary shareholder Army Welfare Trust having presence in various sectors of the economy. Ratings reflect growth in business volumes, improved underwriting performance, conservative investment profile and sound liquidity profile. The rating further incorporates reinsurance arrangements largely with counterparties having sound credit risk profiles, while net retention also remains lower than peers. However, the rating is constrained by high operating and financial leverages; the same have increased on a timeline basis as growth in business volumes has outpaced equity growth where capitalization support to retain risk profile is needed in the growth mode. VIS has noted an increasing trend in the loss ratio on the timeline bais; the same needs to be stringently monitored and rectified. The ratings remain sensitive to growth in business volumes while maintaining sound underwriting quality and strong liquidity.


For further information on this rating announcement, please contact Ms. Maham Qasim at 042-35723411-13 (Ext: 8005) or the undersigned at 021-35311861-70 (201) or email at info@vis.com.pk .



Javed Callea
Advisor

Applicable rating criterion: General Insurance (March 2017)
https://www.vis.com.pk/kc-meth.aspx



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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 2019 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

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