JCR-VIS Credit Rating Company Limited has reaffirmed the Insurer Financial Strength Rating of Reliance Insurance Company Limited (RICL) at 'A' (Single A). Outlook on the assigned rating continues to be 'Positive'. The previous rating action was announced on December 30, 2015.
'A with Positive Outlook’
The assigned rating to RICL incorporates strong liquidity profile, adequate capitalization indicators and reinsurance program along with improving underwriting perfOffilance. \"Vbile maintaining oilier key rating parameters, increasing market share (in terms of both gross and net prcnliums) and sustainability & quantun1 of underwriting profits will be positive rating drivers for the company. RICL is backed by Amin Bawany and AI-Noor Group of Companies, two prominent industrial groups.
Gross prenlium depicted a growth of 8.4 and 9.7 during F)'IS and 9M16, respectively. Marine, aviation and transport segment represents over half of gross premiums followed by fire & property and motor business. In terms of net premium revenue, motor represents around half of total net premiums, Going forward, business volumes are projected to grow at a steady pace with growth planned in marine and motor business where loss ratios have remained manageable.
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