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PACRA's `AAA' rating for State Life

imageddfgKARACHI: The Pakistan Credit Rating Agency (PACRA) has maintained the Insurer Financial Strength (IFS) rating of `AAA' (Triple A) to State Life Insurance Corporation of Pakistan (SLIC).

A statement here on Thursday said that the rating denotes SLIC's exceptionally strong capacity to meet policyholder and contract obligations.

At the same time, risk factors are considered minimal, and the impact of adverse business and economic factors is expected to the extremely small, the SLIC statement added.

The rating reflects state-owned SLIC's leading position in life insurance business in Pakistan.

This is supplemented by the corporation's extensive distribution network, good management quality, comprehensive information system, and growing business volumes, the statement further pointed out.

The rating also factors in the State Life's robust financial profile emanating from its sound investment portfolio that has sizeable surplus over policyholder liabilities.

Meanwhile, the rating draws strong comfort from the guarantee provided by Government of Pakistan (GoP) in respect of liabilities of the corporation.

Copyright APP (Associated Press of Pakistan), 2011