Karachi, June 24, 2014 (PPI-OT): JCR-VIS Credit Rating Company Limited has reaffirmed the Insurer Financial Strength (IFS) rating of Century Insurance Company Limited (CICL) at ‘A+’ (Single A Plus). Outlook on the assigned rating is ‘Stable’.
CICL is part of the Lakson Group of Companies, an industrial group, having prominent presence across several sectors. On a standalone basis, the rating incorporates the sound capitalization indicators of the company. Liquidity profile also depicts strength in terms of the liquid assets carried on balance sheet in relation to outstanding liabilities in addition to which, internal cash generation is also adequately positive.
CICL incurred an underwriting loss of Rs. 3.9m in 2013 as compared to a profit of Rs. 5.1m in the preceding year. The weakening in underwriting results is attributable to increase in net claims ratio while expense ratio has improved in 2013. Expense ratio however still remains relatively on the higher side vis-à-vis peers.
Apart from the health segment, reinsurance coverage for other business segments has been obtained from reputed reinsurance companies. Per exposure claim retained on net account is on the lower side, providing resilience to the company’s underwriting capacity.
The proportion of health business is increasing, which is retained on net account and where claims ratio generally tends to be on the higher side. The impact of changing business mix on underwriting results will continue to be tracked by JCR-VIS.
The company’s investment portfolio comprises one-third exposure in equities while the remaining is deployed in cash/income funds and debt instruments. In recent years, the portfolio has generated steady stream of income and supported the bottom line of the company.
For more information, contact:
Ms. Sobia Maqbool
JCR-VIS Credit Rating Company Limited
Tel: at 021-35311861-70
Fax: +9221 35311872-3
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