Press Release

VIS Reaffirms IFS Rating of The Co-operative Insurance Society of Pakistan Limited

Karachi, December 31, 2019: VIS Credit Rating Company Limited (VIS) has reaffirmed the Insurer Financial Strength (IFS) rating of The Co-operative Insurance Society of Pakistan Limited (CISPL) at ‘BB’ (Double B). The IFS rating of ‘BB’ denotes obligations deemed likely to be met; the protection factors are likely to weaken if changes occur in the economy. Moreover, overall risk factors may vary frequently within this rating category. Outlook on the assigned ratings is ‘Stable’. The previous rating action was announced on December 31, 2018.
The rating assigned to CISPL takes into account its low business generation and weak underwriting performance reflecting limited capacity of the society to meet policyholder and contractual obligations. Credit risk emanating from reinsurance panel selection remains sound with the reinsurer rated in category ‘AA’. Liquidity profile of the company is considered adequate in view of sizeable liquid cushion available along with manageable level of insurance debt. The ratings incorporate meagre organic growth emanating from society’s branch network; Punjab Provincial Cooperative Bank Limited, society’s largest shareholder, contributes major proportion of business. Hence, the market presence of the society remains restricted. The ratings take into account the support available from investment and rental income. Ample room for improvement is available in operating and financial leverages.

For further information on this rating announcement, please contact Ms. Maham Qasim (042-35723411-13, Ext. 8005) and/or the undersigned at 021-35311861-66 (Ext. 201) or email at .

Javed Callea

Applicable rating criterion: General Insurance (May 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 2019 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

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