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Insurance industry

Pakistan's National Insurance Company Maintains Strong Financial Health

Strategic Insights

— 1 min read

The National Insurance Company Limited (NICL), a state-owned enterprise in Pakistan, has reaffirmed its Insurer Financial Strength (IFS) rating by JCR-VIS Credit Rating Co. Ltd. (JCR-VIS) at A+ with a stable outlook. Despite recent challenges, including the 2010 floods, the company has maintained a robust underwriting performance, with an overall claims ratio of 33% in 2009. NICL's strong capital base and liquidity reserves have contributed to its stability, and the company's diversified investment portfolio, including government securities and income funds, provides significant support to its profitability. The rating also takes into account the recent appointment of Mr. Tariq Iqbal Puri as the Acting Chairman of NICL, who is working to tap into un-insured public interests and enhance return on investments.

Key Takeaways:

  • JCR-VIS reaffirmed National Insurance Company's Insurer Financial Strength (IFS) rating at A+ with a stable outlook.
  • The company maintained a robust underwriting performance, with an overall claims ratio of 33% in 2009.
  • NICL's strong capital base and liquidity reserves have contributed to its stability.
  • The company diversified investment portfolio, including government securities and income funds, provides significant support to its profitability.
  • Mr. Tariq Iqbal Puri, Chief Executive Officer of Trade Development Authority of Pakistan, has been appointed as the Acting Chairman of NICL, with a focus on tapping un-insured public interests and enhancing return on investments.
  • The company entered into real-estate transactions worth around Rs. 3.8 billion in 2009 and 1H10, which are currently under judicial review.
  • NICL's investment income provides considerable support to its profitability, and the company has a large investment portfolio at the end of June 2010.

Statistics:

  • National Insurance Company's premium business experienced growth in 2009, amounting to Rs. 6 billion.
  • The company's underwriting performance has been strong, with an overall claims ratio of 33% in 2009.
  • The rating takes into account the large capital base and liquidity reserves of the company, which stood at around Rs. 10 billion.
  • NICL has a diversified investment portfolio, with a large investment in government securities and income funds, worth around Rs. 4 billion.
  • The company's premium in the fire and marine segment has experienced higher premium base in 2010 compared to 2009.

Sources:

  • (ADPnews) - Jan 10, 2011 - Pakistan's JCR-VIS reaffirmed on Thursday the AA+ insurer financial strength (IFS) rating with a "stable" outlook of National Insurance Company.
  • JCR-VIS Credit Rating Co. Ltd. (JCR-VIS) press release, Karachi, January 06, 2011.

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