PACRA Harmonizes IFS Rating of The Universal Insurance Company Limited
|IFS Rating||A (ifs)||A-|
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 “The Universal Insurance Company Limited”.
Universal Insurance Company Limited, incorporated in 1958, is listed on Pakistan Stock Exchange (PSX). The majority ownership of the Company is held by Bibojee Group (87%), through holding Company “Bibojee Services Private Limited” (BSL). Bibojee group is well-established in having its presence in various industrial sectors including Textile, Auto, Tyres & Rubber and Engineering. Seven members BoD is constituted of five members from sponsoring family and two independent directors. One casual vacancy of chairman BOD was previously vacant due to the resignation of director/ chairman Lt. Gen (R) Ali Kuli Khan Khattak. Now, Mr. Raza Kuli Khan Khattak is appointed as chairman BOD with effect from 08 April,2021. Board is dominated majorly by the sponsor family and is supported by Principal Officer – Mr. Amir Raza, who is an experienced insurance professional long associated with the company.