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The Pakistan Credit Rating Agency Limited

Date
09-Jun-2017
Analysts
Jhangeer Hanif
jhangeer@pacra.com

Faraan Taimoor
faraan.taimoor@pacra.com

+92-42-35869504
www.pacra.com
Applicable Criteria

  • General Insurance and Takaful Operator (Jun 16) [View]
  • Rating Modifiers | Outlook and Rating Watch (Jun 16) [View]

Related Research

  • Sector Study | General Insurance (Nov 16) [View]
Disclaimer
This press release is being
transmitted for the sole purpose of
dissemination through print/electronic
media. The press release may be used
in full or in part without changing the
meaning or context thereof with
due credit to PACRA
PACRA Maintains IFS Ratings of The Pakistan General Insurance Company Limited
 Rating Type Insurer Financial Strength(IFS)
Current
(09-Jun-2017-)
Previous
(09-Jun-2016)
 Action Maintain Maintain
 IFS Rating A- A-
 Outlook Stable Stable
 Rating Watch - -

The rating reflects PGI's sustained positioning amidst challenges facing the topline of the company. Though GPW mix is skewed towards conventional segments – fire and marine - the incidence of loss has remained low. The company is committed in recovering premium receivables and has made progress though further recovery is required in due course of time. Furthermore, increase in investment properties have yielded a steady stream of stable rental income.

The rating is dependent upon company's ability to completely execute strategy for recovery of premiums as per plan, thereby preserving its cash reserves. At the same time, strengthening of market position in the form of GPW growth and profitability is critical. Requisite levels of liquid investments is essential.
About the Entity
The Pakistan General Insurance Company Limited (PGI), established in 1947, is listed on Pakistan stock exchange. Majority shareholding is with Mr. Zahoor Ahmad and his family. The effective controlling stake is held by the family and directors (above 50%). The rest of the shareholding is diverse. PGI, with its Head Office in Lahore, operates a network of 36 branches spread across the country.

PGI’s Board of Directors comprises seven members. The board comprises four individuals from the sponsoring family, one executive director and two independent directors. Mr. Nasir Ali, appointed CEO in 2016, was previously advisor to CEO. He is a qualified Chartered Insurer and has been associated with PGI since 2003
The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.
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