Lahore: VIS Credit Rating Company Limited has reaffirmed the Insurer Financial Strength (IFS) rating of UBL Insurers Limited at 'AA+' (Double A Plus), highlighting a solid capacity to meet policyholder and contract obligations with a stable outlook.

According to a statement by VIS Credit Rating Company Limited, the rating indicates low risk factors for UBL Insurers Limited and minimal impact from adverse business and economic conditions. The previous rating action was announced on December 19, 2023.

UBL Insurers Limited has been active in the non-life insurance sector for over a decade, offering both conventional insurance products and takaful products through Window Takaful Operations. The company benefits from the sponsorship of UBL, Pakistan's third-largest private commercial bank, and the Bestway Group.

The reaffirmed rating reflects UBL Insurers Limited's position as the fifth-largest general insurance company in the industry, holding a market share of 4.5% as of June 2024. The company's cautious underwriting approach has led to a slight improvement in conventional loss ratios, resulting in underwriting profits.

The company's risk profile is supported by sound reinsurance arrangements with reputed international reinsurers, and its liquidity position has strengthened. The aging of claims is considered sound, with no claim’s overdue for more than a year, and operating leverage has improved due to growth in the equity base.