KARACHI: VIS Credit Rating Company Limited has maintained the insurer financial strength rating of Alpha Insurance Company Limited (AICL) at single A. The rating signifies high capacity to meet policyholder and contractual obligations.
Risk factors may vary over time due to business/economic conditions. The outlook on the assigned rating has been revised from negative to stable. The previous rating action was announced on October 20, 2020, said release on Thursday.
Rating derives strength from AICL being a subsidiary of State Life Insurance Corporation of Pakistan (SLIC), the largest life insurance company of the country and owned by the Government of Pakistan.
The assigned rating also takes into account the stability and experience of the management team. Strong re-insurers have been maintained on the company’s panel. Revision in rating outlook incorporates timely materialization of projected business growth as a result of ongoing rehabilitation program.
Key features of the same include identifying new un-tapped market segments, re-enlistment and enhancement of limits with banks, improving efficiency through cost management, and consolidation through closure of un-productive branches, and opening new branches over the medium term.