State Life credit rating kept at AAA
Largest life insurance company holds on to perfect rating assigned by PACRA for another year.
KARACHI:
The State Life Insurance Company (SLIC), the country’s largest life insurance company, held on to its ‘AAA’ credit rating assigned by Pakistan Credit Rating Agency (Pacra), for another year.
Pacra has renewed SLIC’s rating at ‘AAA’ in its annual review. According to a statement, the company said, “risk factors are considered to be minimal and the impact of adverse business and economic factors is not expected to be significant.”
The rating is a strong vote of confidence for the insurer’s ability to meet contractual obligations to its borrowers and clients. “The rating reflects the leading market position of SLIC in life insurance industry, supported by its extensive distribution network, stable and experienced management, comprehensive information systems and growing business volumes,” said the company.
SLIC, headed by Chairman Shahid Aziz Siddiqi, operates from 26 zonal offices in all four provinces and Dubai, as well as three regional ones. Business volumes increased from Rs7 billion in 2009 to Rs9.33 billion in 2010, with new premiums showing an increase of 35 per cent. About 651,460 additional clients were signed on by the company in the same period, an increase of 24 per cent in both life and general categories.
More than eight million people are insured by the company in the group and individual categories and total claims paid last year amounted to Rs7.85 billion. The company’s Life Fund grew to Rs225 billion in 2010, representing a 14 per cent increase from Rs198 billion in 2009. “The rating factors in the corporation’s robust financial profile emanating from its sound investment portfolio,” said the company statement. “Meanwhile, the rating draws comfort from the strong ownership structure of the corporation – fully owned by the Government of Pakistan (GoP) – supplemented by GoP’s guarantee in respect of liabilities of the corporation.”
The Corporation
SLIC was incorporated in March 1972 when the life insurance business in Pakistan was nationalised. Currently, the company operates largely in life insurance (individual and group) and pension schemes segments. The corporation’s board of directors comprises eight members, including the chairman. The federal government through the Ministry of Commerce (MoC) nominates board members who are independent directors.
Published in The Express Tribune, February 24th,2011.
The State Life Insurance Company (SLIC), the country’s largest life insurance company, held on to its ‘AAA’ credit rating assigned by Pakistan Credit Rating Agency (Pacra), for another year.
Pacra has renewed SLIC’s rating at ‘AAA’ in its annual review. According to a statement, the company said, “risk factors are considered to be minimal and the impact of adverse business and economic factors is not expected to be significant.”
The rating is a strong vote of confidence for the insurer’s ability to meet contractual obligations to its borrowers and clients. “The rating reflects the leading market position of SLIC in life insurance industry, supported by its extensive distribution network, stable and experienced management, comprehensive information systems and growing business volumes,” said the company.
SLIC, headed by Chairman Shahid Aziz Siddiqi, operates from 26 zonal offices in all four provinces and Dubai, as well as three regional ones. Business volumes increased from Rs7 billion in 2009 to Rs9.33 billion in 2010, with new premiums showing an increase of 35 per cent. About 651,460 additional clients were signed on by the company in the same period, an increase of 24 per cent in both life and general categories.
More than eight million people are insured by the company in the group and individual categories and total claims paid last year amounted to Rs7.85 billion. The company’s Life Fund grew to Rs225 billion in 2010, representing a 14 per cent increase from Rs198 billion in 2009. “The rating factors in the corporation’s robust financial profile emanating from its sound investment portfolio,” said the company statement. “Meanwhile, the rating draws comfort from the strong ownership structure of the corporation – fully owned by the Government of Pakistan (GoP) – supplemented by GoP’s guarantee in respect of liabilities of the corporation.”
The Corporation
SLIC was incorporated in March 1972 when the life insurance business in Pakistan was nationalised. Currently, the company operates largely in life insurance (individual and group) and pension schemes segments. The corporation’s board of directors comprises eight members, including the chairman. The federal government through the Ministry of Commerce (MoC) nominates board members who are independent directors.
Published in The Express Tribune, February 24th,2011.