PACRA Maintains IFS Rating of Atlas Insurance Limited
The rating captures AIL's robust underwriting performance, persistent over the years. This results from a stable stream of quality business and a diverse segment mix. Noticeable growth in non-captive business bodes well for improved footprints in the market. The company is eying large public sector projects to drive future growth. AIL, with launch of window takaful operations, now aims to spur growth through Shariah compliant products as well. The rating takes into account robust liquidity profile, providing strong coverage to the company's obligations. AIL continues to have a sound panel of reinsurers with favorable treaty terms and prudent risk retention policies. The company's association with Atlas group providing benefits in terms of sustained low-risk captive business, while ensuring sound governance framework, remains a key rating factor.
The rating is dependent on sustained improvement in business and financial metrics of the company in line with its relative positioning with in the industry. At the same time, liquidity profile should continue to cushion the liabilities. Recent improvement in claims management system should translate into reduced claims turnaround time.
AIL - listed on Pakistan Stock Exchange - started operations in 1934. AIL provides all major types of conventional and non-conventional general insurance services. AIL has a network of 22 branches across the country. The CEO, Mr. Arshad P. Rana, has profound experience both in domestic and international market. He is assisted by a qualified management team.
Atlas Group - having 78% stake in AIL - is a leading conglomerate of the country with interests in Auto, Engineering, Power, Financial sectors and Trading. The group has established an Executive Committee that liaises with the management team of individual companies to offer insight into strategic direction. The group also has a Group Advisory Board, headed by Mr. Yusuf H. Shirazi, the founder of the group. The Board of Directors of AIL comprises seven members, including two independent directors.