The Pakistan Credit Rating Agency Limited
30-May-17
Analyst
Ayesha Qasim
ayesha.qasim@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Maintains IFS Ratings of TPL Life Insurance Company Limited
| Rating Type | IFS | |
|
Current (30-May-17 ) |
Previous (18-Apr-16 ) |
|
| Action | Maintain | RW-Developing |
| IFS Rating | A- | A- |
| Outlook | Stable | Rating Watch-Developing |
| Rating Watch | - | - |
The rating incorporates the refined business strategy implemented by the new sponsor. The strategy encompasses innovation in its products and increased penetration in lower income segments. The strength of the new sponsor is evident from the fresh injection of capital – further equity injection expected in CY17. The risk absorption capacity is ample emanating from a high level of liquid assets – declined lately due to cleansing of liabilities from the balance sheet. The management plans to follow selective underwriting approach. TPL Life has adopted a bottom-line centric approach targeting low-ticket business. The company embarked upon an organizational re-alignment process with enduring emphasis on 'KPIs' for all tiers; the management expects fruits of this exercise to emerge in the near future. TPL life is going for an IPO in near future, success of IPO remains critical.
The rating is dependent on the company's ability to execute its business plan in an effective and timely manner; herein, growth in top-line and underwriting profits are essential. Maintaining liquidity level at a requisite level is a key essential for the rating.
About
the Entity
TPL Life Insurance Limited (Formerly Asia Care Health and Life Insurance Company Limited) was incorporated in 2008 and obtained license to carry on life and related line of business in 2009. During CY16, TPL Trakker Limited, a subsidiary of TPL Holdings (Pvt) Limited, acquired 100% stake of the company. TPL Trakker Limited (TPL), listed on Pakistan Stock Exchange, is Pakistan’s largest vehicle tracking and fleet management company.
The new board of TPL Life consists of eight members, all from the sponsoring group. Mr. Jameel Yusuf Ahmed, the chairman, is a veteran businessman and is also the Chairman of TPL Holdings (Pvt) Limited. The new CEO of the company, Mr. Faisal Abbasi, is a professional having experience of over 19 years in Life Insurance and banking sector. He is assisted by a team of experienced professionals.