KARACHI: PACRA assigns positive outlook to IFS Rating of the United Insurance Company of Pakistan Limited.
The rating reflects UIC's strong business fundamentals emanating from a sustained growth in GPW, hence enabling UIC to emerge as a fourth largest player in the country. UIC has sustained market share above 5 percent from the last four quarters. At the same time, underwriting profitability has seen decent uptick mainly from motor, and miscellaneous insurance.
The company is led by strategic vision of the chairman of United International Group Mian M. A. Shahid, an insurance veteran. Going forward the company will continue to focus on enhancing its market position. Core to expansion strategy remains branch network and experienced sale team. The growth in business volume is diluting the impact of historically high business acquisition cost.
Currently, liquidity profile of the company reflects room for augmentation. Incremental cash float have been deployed in strategic investment - APNA Microfinance Bank: the sizeable market value of the same provides significant supplement to the liquidity position of the company.-PR