The Pakistan Credit Rating Agency Limited
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Muneeb Rashid

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PACRA Maintains IFS Rating of Atlas Insurance Limited

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

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.

About the Entity
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.

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.