The Pakistan Credit Rating Agency (Pacra) has upgraded the IFS rating of the United Insurance Company of Pakistan Limited (UIC) to "A" (single A) {previously "A-" (single A minus) with positive outlook}. The rating denotes strong capacity to meet policyholder and contract obligations. Risk factors ate moderate, and the impact of any adverse business and economic factors is expected to be small.
The rating reflects UIC's strong risk absorption capacity emanating from a robust financial base and sound liquidity that adequately supports the company's high growth stance. The company's business strategy focuses on widespread small ticket business volumes. Although this has led to high business acquisition cost, the benefits are accrued in the form of low loss ratio, engendering superior underwriting performance compared to peers.-PR