Karachi, December 29, 2021 (PPI-OT):VIS Credit Rating Company Limited (VIS) has reaffirmed the Insurer Financial Strength rating of Chubb Insurance Pakistan Limited (CIPL) at ‘AA’ (Double A). The rating signifies very high capacity to meet policyholder and contract obligations. Risk is considered modest but may vary slightly over time due to economic conditions. Outlook on the assigned rating is ‘Stable’. Previous rating action was announced on December 31, 2020.
CIPL operates as a wholly owned subsidiary of Chubb INA International Holdings Limited (U.S.A). The company follows a very selective underwriting strategy. CIPL’s primary competitive advantage is the sizable treaty capacities arranged with associate Group company; as the counterparty, in this case is highly rated on the international scale, it allows CIPL to underwrite complex and specialized risks across the property line. In the ongoing year, the company has reviewed its strategy to expand retail and direct business. The assigned rating derives strength from the sponsor profile of Chubb Group, representing the world’s largest property and casualty insurers with operations in 54 countries. The rating also reflects the technical and financial assistance provided to CIPL from the parent company.
The rating incorporates growing trend in business volume, improvement in underwriting results on a timeline basis with lower loss ratio. In addition, recurring investment income continues to support the bottom line. Capitalization is supported by relatively low operating leverage on a timeline basis while financial leverage decreased marginally in the ongoing year. Liquidity is considered sound while liquid assets in relation to technical reserves, though decreased, remained adequate. The company has maintained adequate reserves against regulatory requirement for solvency. Rating remains dependent on sustained growth in business while maintaining combined ratio, leverage and profitability metrics within acceptable benchmarks.
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/