VIS Credit Rating Company Ltd has revised downwards the Insurer Financial Strength (IFS) rating of Allianz EFU Health Insurance Limited (Allianz EFU) to ‘A’ (Single-A) from ‘A+’ (Single A Plus).
The rating has been downgraded due to increasing competition in the health segment resulting in business volumes of the company remaining stagnant at Rs. 2.0 billion. Furthermore, the Profitability of the company also declined to Rs. 57.0 million as compared to Rs. 85 million in 2017 primarily because of lower investment income.
Going onwards, VIS Credit Rating Company believes that risk-adjusted capitalization levels should increase in order to keep leverage indicators within manageable levels. Furthermore, Management of liquidity indicators, which declined during the outgoing year, is considered going onwards.