Business & Finance Print edition: 2021-01-02

VIS reaffirms IFS rating of Reliance Insurance at ‘A’

Published January 2, 2021 Updated January 2, 2021 03:14am

1 min

By Recorder Report

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KARACHI: VIS Credit Rating Company Limited has reaffirmed the Insurer Financial Strength Rating of Reliance Insurance Company Limited (RICL) at ‘A’ (Single A). Outlook on the assigned rating is ‘Positive’.

The rating signifies high capacity to meet policyholder and contractual obligations. Risk factors may vary over time due to business/economic conditions. The previous rating action was announced on December 31, 2019.

In 2019, RICL’s business volume has posted contraction, as a result of which the company’s market share has decreased. The contraction was mainly a result of closure of operations of a large-sized ‘Marine, Aviation & Transport’ segment client. Subsequently, business mix has become relatively more tilted towards traditional business lines.

The company’s underwriting profitability remained depressed during the period under review. RICL’s combined ratio remains aligned with peers. The company’s bottom line posted notable improvement on the back of improved investment performance, which was in line with the uptick in stock market performance and in tandem with other industry participants.

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