Major insurer maintains top tier financial strength
Tariq Khattak
ISLAMABAD: VIS Credit Rating Company has maintained the AA plus Insurer Financial Strength rating for United Insurance Company of Pakistan Limited while upgrading its outlook from Rating Watch Developing to Stable, marking improved confidence in the insurer’s financial resilience.
The AA plus rating denotes very strong capacity to meet policyholder and contract obligations, with VIS noting consistent growth in Gross Written Premium across both conventional and takaful segments. The rating agency highlighted United Insurance’s strong competitive position among leading general insurers in Pakistan, with market share expansion contributing to revenue growth.
The rating confirmation reflects United Insurance’s diversified business portfolio under parent United International Group, which operates across insurance, information technology, dairy and vehicle tracking services. Despite regulatory dispute with SECP over guarantee business operations, the company maintained its largest segment in miscellaneous insurance, which provides higher premium revenue with meaningful contribution from expanding takaful operations.
VIS emphasized improved underwriting profitability through better claims ratios, disciplined underwriting practices and effective cost controls. The insurer maintains sound liquidity position with liquid assets comfortably covering net technical reserves, while its conservative investment mix emphasizing government securities limits market volatility exposure.
The rating agency confirmed robust reinsurance arrangements with most treaties secured through highly rated international reinsurers, noting that risk retention practices remain aligned with the company’s risk appetite. VIS highlighted the disciplined underwriting approach as key to maintaining financial strength amid challenging market conditions.
Looking ahead, the rating depends on prudent underwriting risk management and maintaining profitability metrics amid regulatory scrutiny of guarantee operations in the miscellaneous segment. The agency expects United Insurance to strengthen its risk management framework and internal controls to address potential regulatory concerns.
Leave a Reply