The Pakistan Credit Rating Agency Limited
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Mahina Majid

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PACRA Maintains IFS Rating of Alfalah Insurance Company Limited

Rating Type IFS
Action Maintain Maintain
Long Term A+ A+
Short Term - -
Outlook Stable Stable
Rating Watch - -

The rating recognizes sustained execution of the company's business strategy leading to build up of non-captive business volumes, while keeping overall underwriting performance intact. The rating takes comfort from the monitoring and performance evaluation of the core business in a wholesome manner. This, along with the company's conservative stance, in the form of low risk retention, continues yielding profitability. The company intends to fortify its position with innovative products while diversifying its business. The rating recognizes AFIC's maintained financial profile, emanating from i) well managed insurance assets/liabilities structure, and ii) growing investment book that contributes a sizable income stream. AFIC's association with Abu Dhabi group is also a consideration.
The rating is dependent on the company's ability to fortify its market share in the competitive landscape, while upholding the underwriting performance. Strengthening of liquidity profile is vital. Any deviation from the projected path may have negative implication.

About the Entity
Alfalah Insurance Company Limited (AFIC), commencing business in Sep'06, is engaged in providing non-life insurance services. AFIC, with its head office in Lahore, operates through two business Hubs - North and South - with a total of 12 branches. Abu Dhabi Group (ADG), consisting of members of UAE's ruling family and leading businesses, owns AFIC through key sponsoring individuals and group companies including Bank Alfalah Limited - sixth largest bank having assets at end-Sep16 of PKR 870bln.
AFIC's seven member board, including CEO, is chaired by Sheikh Hamdan Bin Mubarak Al Nahayan. Three board members come from the sponsoring group; two members represent Bank Alfalah Limited, while one member holds executive position in ADG. The CEO, Mr. Nasar us Samad Qureshi, assisted by a team of professionals, possesses around three decades of related experience.

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.