LAHORE, Jan 21: Pakistan Credit Rating Agency (Pacra) has assigned an Insurer Financial Strength (IFS) rating of “AA” (double A) to International General Insurance (IGI) Company of Pakistan Ltd.

The rating denotes a very strong capacity to meet policy holders and contract obligations, said an announcement issued here on Monday. While assigning the rating, Pacra has recognized the very strong financial base and solvency margin of the company, both being substantially higher than peers. These reflect the inherently strong ability to meet policyholders and contract obligations despite a difficult operating environment, said the announcement. It added the stable nature of revenue from the company’s core business coupled with a very strong investment portfolio and conservative risk management policies provide added comfort for policy holders.

Effective Jan 1, 2002, Pacra has also changed its Claims Paying Ability rating into IFS rating. The change, said the announcement, was in line with the international practice of Pacra’s principal sponsors — FITCH — and to more fully reflect the methodology of insurance ratings which takes into account the overall financial strength of the insurer rather than its ability to pay insurance claims only.