The Pakistan Credit Rating Agency Limited
31-Mar-22
Analyst
Waqas Ahmad
waqas.ahmad@pacra.com
+92-42-35869504
www.pacra.com
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Related Research
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PACRA Harmonizes IFS Rating of Askari General Insurance Company Limited
| Rating Type | IFS | |
|
Current (31-Mar-22 ) |
Previous (14-Feb-22 ) |
|
| Action | Harmonize | Maintain |
| IFS Rating | AA+ (ifs) | AA |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
Insurer Financial Strength (IFS) rating is an independent opinion on the relative “capacity of an insurance company to meet policyholder and contract obligations”. To facilitate insurance companies and users of IFS ratings, PACRA has modified the IFS rating scale. The primary objective behind this modification was to: a) Create distinction in symbols and definitions of IFS Ratings and Credit Ratings; previously same symbols were being used for both type of ratings. Now IFS symbols are exclusive for IFS ratings b) Eliminate ambiguities in terms of “Rating Category” and “Notch”; this has now been achieved in the modified scale, which will be helpful in understanding the meaning and connotation of each rating category and notch, c) Update certain definitions for more clarity.
This is expected to eliminate any overlap or ambiguity regarding rating categories and notches; thus, facilitating all stakeholders. The modified scale is applicable for all outstanding IFS ratings including “Askari General Insurance Company Limited”.
About
the Entity
Askari General Insurance Company Limited, listed at Pakistan Stock Exchange, commenced commercial operations in 1995. The company operates a nationwide network of 20 branches with a head office in Rawalpindi. The controlling stake is with AWT (59%). AWT was set up in 1971 by Pakistan Army for promoting the welfare of retired personnel of the Army and their families through the creation of income and employment generating activities. AWT is currently engaged in real estate, security services, sugar, and lubricants. It manages a sizable book of strategic investment, which yields a significant amount of dividend every year to the fund.
AGICO board comprises eight members excluding the CEO. The board includes retired army officials, senior executives of AWT, and three independent members. Mr. Abdul Waheed, CPA (USA) - a seasoned professional having a deep understanding of the insurance business - is the CEO of AGICO since July 2010. A team of professionals assists him.