VIS maintains IFS rating of AICL

KARACHI: VIS Credit Rating Company Limited has maintained the Insurer Financial Strength rating of Alpha Insurance Company Limited at Single A.

The rating signifies high capacity to meet policyholder and contractual obligations. Risk factors may vary over time due to business/economic conditions. Outlook on the assigned ratings has been revised from stable to negative. The previous rating action was announced on January 31, 2018, said a press release on Friday.

Rating incorporates the implicit support of parent company, State Life Insurance Corporation of Pakistan (SLIC), the largest life insurer of the country. Change in outlook takes into account declining business volumes, significant underwriting losses and frequent changes in the senior management.

However, the company benefits from its equity base which compares favorably to peers. This capitalization level, though eroding on a timeline basis, keeps leverage indicators within manageable levels.