JCR-VIS Credit Rating Company Limited has reaffirmed the Insurer Financial Strength (IFS) rating of Reliance Insurance Company Limited (RICL) at 'A' (Single A). Outlook on the assigned rating continued to be 'positive'. The previous rating action was announced on December 30, 2015.
The assigned rating to RICL, incorporate strong liquidity profile adequate capitalisation induction and reinsurance programme along with improving underwriting performance. Reliance Insurance Company Limited (RICL) is backed by Amin Bawany and Al-Noor Group of Companies, two prominent industrial groups having presence across several sectors including sugar.
Gross premiums depicted a growth of 8.4 percent and 9.7 percent during FY15 and 9M16, respectively. The rating incorporates sound capitalisation level of the company that has strengthened over time on the back of retained earnings. Overall liquidity profile of the company is considered adequate in view of sizeable liquid assets in relation to liabilities manageable level of insurance debt and positive cash flow from operations.
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