The Pakistan Credit Rating Agency (PACRA) has assigned an Insurer Financial Strength rating of “A-” (single A minus) to Shaheen Insurance Company Limited (SIC). The rating denotes strong capacity to meet policyholder and contract obligations. At the same time, risk factors are moderate, and the impact of adverse and economic factors is expected to be modest.

SIC’s rating reflects the improving trend in profitability, both from underwriting operations and contribution on account of investment income. The company’s solvency position and equity base in relation to premium written is relatively constrained at present due to aggressive growth in business in the past couple of years. However, with expected augmentation in the equity base through improved profitability, increasing size of the investment portfolio, and moderate growth targets in the coming years, the risk profile of the company is expected to improve. Meanwhile, the rating also factors in the recent initiatives by the management for improving the technology infrastructure within the company, aimed at enhancing the efficiency of operations and strengthening controls.

About the company: SIC commenced commercial operations as a general insurance company in 1995, and is currently listed on all three bourses of the country. With its head office in Karachi, the company has a nationwide network of over 20 branches and liaison offices. The company has three major shareholders, a). Hollard Insurance Company Limited (HICL); b). First Capital Security Corporation (FSCL); c). Shaheen Foundation (SF), each having around 30% stake in the company.