JCR-VIS reaffirms IFS Rating of Alpha Insurance Company Limited

KARACHI: JCR-VIS Credit Rating Company Limited has reaffirmed the Insurer Finandal Strength (IFS) ratifig of Alpha Insurance Company Limited (AICL) at 'A' (Single A).

Outlook on the assigned rating is 'Stable'. The previous tatifig action was announced on December 15,2015, said a press release on Wednesday.

Current rating of AICL derives strength from financial profile and demonstrated support of its sponsor, State life Insurance Corporation of Pakistan (SLIC).

The SLIC is the largest life insurance company in the country and is owned by the Government of Pakistan.

Assigned rating continues to be constrained by persistent trend in underwriting Iosses, high levels of insurance debt & outstanding claims.

Gross premium written by the company has witnessed a noticeable decline on a timeline basis, primarily attributable to frequent changes in the top management over the years. The company has also made concerted efforts towards improving its overall control environment which diverted the company's focus from business development, during 2017.

Going forward, AICL anticipates higher business volumes with a prudent under-writiag practice.

In order to achieve its projected level of premiums, the company has revamped its sales force and distribution network.

In addition to the financial support demonstrated by SLIC, the sponsor has also provided AICL support through its marketing and business development avenues. Developments in this regard are yet to materialize.