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The Pakistan Credit Rating Agency Limited

Date
30-Dec-2017
Analysts
Jhangeer Hanif
jhangeer@pacra.com

Rohail Amjad
rohail.amjad@pacra.com

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

  • Methodology | Insurer Financial Strength (IFS) Rating | General (Jun 17)

Related Research

  • Sector Study | Insurance | Life (Apr 17)
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PACRA Maintains Entity Ratings of TPL Insurance Limited
 Rating Type Insurer Financial Strength(IFS)
Current
(30-Dec-2017)
Previous
(16-May-2017)
 Action Maintain Upgrade
 IFS Rating A+ A+
 Outlook Stable Stable
 Rating Watch - -

The rating reflects established position of the company in its niche market ¬ non life Insurance. The company has been sustainably augmenting its market positioning. Third largest player in motor segment, TPL Insurance Limited holds substantial share in industry's GPW of the segment. Advanced technology infrastructure has continued providing an edge to the company ¬ amidst high competition. Rolling out new business strategy, the company launched corporate line insurance in Property and Marine segments. With structured efforts,TPL Insurance Limited intends to fortify its inroads in commercial lines. This has added diversity to product slate of TPL Insurance Limited. Capitalising on strong foothold in niche market ¬ TPL Insurance Limited is establishing relationships with intermediaries; bankers and auto manufacturers. Window takaful volumes are growing, though profitability is yet to materialize in this segment. With rise in business size, the underwriting profitability must improve. Currently, the financial risk profile is equipped with sound liquidity, however, needs to be monitored carefully as the company takes the trajectory of growth.
About the Entity
TPL Insurance Limited (TIL), formed in 1992 and listed on Pakistan Stock Exchange, a majority owned (~93%) subsidiary of TPL Corp, following the repurchase of stake held by Greenoaks Global Holdings (GGH).

The CEO, Mr. Saad Nissar, an MBA from the Institute of Business Administration (IBA), has been on the position since Jan-09, and is supported by a team of experienced professionals
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.