PACRA Maintains Entity Ratings of IGI Holdings Limited

The ratings reflect the robust investment profile of IGI Holding Limited company ("IGI Holdings" or "the Company"). IGI Holdings consolidates the financial sector investments of Packages Group, covering both Life and Non-life Insurance, along with Brokerage. The Company maintains diversification in its investment portfolio through a wholly owned subsidiary IGI Investments (Pvt.) Ltd which functions as an investment holding company. The Company has a well-established mechanism for supervising the investment management and monitoring processes, as well as for making new investments, a crucial requirement for any holding company. The Company receives steady dividend income from its core investments that are IGI general insurance and IGI Investments (pvt.) Ltd. During 9MCY23, investment income of IGI Holdings increased to PKR 1,094mln (9MCY22: PKR 966mln). The Company maintains a strong financial risk profile due to strong coverages. Whereas, liquidity of the company also indicates the company's strong financial position. Net income of the company stood at PKR 837mln in 9MCY23 (9MCY22: PKR 760mln). The short-term debt is employed to address the timing difference in dividend payments. During 9MCY23, the short term debt stood at PKR 968mln (9MCY22: PKR 1,198mln). However, the Company shows a strong leverage position as leverage of the company stood at 6.2% in 9MCY23 (9MCY22: 9.8%). Whereas return on equity also experienced a slight surged as it stood at 8% in 9MCY23 (9MCY22: 7%). The Company has also invested PKR 100mln, through IGI Investments, in the micro insurance distributor, Milvik Mobile Pakistan to diversify the investment portfolio, providing health and insurance services to customers.
Ratings depends upon the existing and new strategic investments along with investment and governance framework. Establishing a robust and efficient system to monitor performance and offer comprehensive guidance to its subsidiaries, coupled with diversifying investments, would positively impact the rating of IGI Holdings Limited.

About the Entity
IGI Holdings Limited, incorporated as a public limited company in 1953, is an Investment Holding Company for financial services business of Packages Group. The Company completed its corporate restructuring during 2017 involving amalgamation of IGI Investment Bank into IGI Insurance Limited and demerger of Insurance segment and Investment segment resulting in wholly owned subsidiaries i.e. IGI General Insurance Limited and IGI Investments (Pvt.) Limited. As a result, IGI Insurance was renamed to IGI Holdings Limited. The investment portfolio comprises four subsidiaries in the financial sector; IGI General Insurance, IGI Life Insurance, IGI Investments, and IGI Finex Securities. Major ownership of IGI Holdings (~63%) vests with Packages Group through sponsors (~24.36%) and associated entities (~38.24%). The remaining stake of ~8.29% is held by Financial Institutions, Banks, Insurance Companies, Modarabas & Mutual Funds and the rest ~29% is free floated. Syed Babar Ali serves as the Chairman of the Board while Syed Hyder Ali is the CEO of the Company.