Karachi, December 29, 2021 (PPI-OT):VIS Credit Rating Company Limited (VIS) has reaffirmed the Insurer Financial Strength (IFS) rating of Century Insurance Company Limited (CICL) at ‘AA-’ (Double A Minus). The rating signifies very high capacity to meet policyholder and contractual obligations. Risk is modest, but may vary slightly over time due to business/economic conditions. Outlook on the assigned rating is Stable. Previous rating action was announced on December 31, 2020.

Assigned rating reflect sound profile of sponsors having presence in diversified sectors, modest and steady growth in business volumes and underwriting profits, diversified panel of reinsurance arrangements and sound capitalization indicators.

Gross premiums witnessed growth in FY21 as well as in 9M’21 on account of Company generating new business in Motor and Marine segment. Further growth is envisaged in the motor, marine and fire segments. Meanwhile management has adopted a cautious approach in relation to health portfolio given high incidence of claims in this sector. Net claims of the Company declined during 2020 given subdued business activity with the start of pandemic, however, returned to pre-pandemic levels during 9M’21.

The Company’s investment portfolio is tilted towards income/money market funds and debt instruments. In recent years, the portfolio has generated steady stream of income emanating from higher income from fixed income/ debt instruments and realized gain on sale of equity securities. Higher investment income also supported profitability levels during 2020 and 9M’21 along with growth in underwriting profits.

Loss absorption capacity of the Company and ability to underwrite business is supported by a diverse panel of reinsurers. Liquidity profile draws comfort from sizable liquid assets carried on its balance sheet. Capitalization indicators remain sound and facilitate room for future growth while maintenance of the same along with sound levels of liquidity, insurance receivables and claims are important rating drivers from the assigned rating perspective.

For more information, contact:
Director Compliance and Rating Analytics,
VIS Credit Rating Company Limited
VIS House, 128/C, 25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi, Pakistan
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: bilal@jcrvis.com.pk
Website: https://www.vis.com.pk/