PACRA Upgrades IFS Rating of Asia Insurance Company Limited
Asia Insurance is emerging fast amongst small-sized general insurance companies. It is characterized by a) profitable premium expansion, b) strong liquidity and c) good coverage to liabilities. Company’s real estate project – Asia House – located at a prime location, has started yielding a stable stream of rental income supplementing the bottom-line. Meanwhile, underwriting performance has improved significantly with gradual uptick in business volumes coupled with operational efficiencies. The business plan envisages further penetration in the market on the back of extended branch network, exploring both general and takaful avenues. Notably, Asia Insurance is carrying a conservative stance in its underwriting risk management practices also reflected in it’s proportionate reinsurance treaty arrangements.
The rating is dependent upon augmenting the company’s competitive positive with enhanced market share and profitability. In addition, strengthening of management structure, as the company takes further growth trajectory is essential. Investment management framework needs improvement.
Asia Insurance Company Limited (ASIC), established in 1979 as a general insurance company, is listed on Pakistan Stock Exchange. The free float has been limited and the company is almost entirely owned (~98%) by Mr. Ihtsham ul Haq Qureshi and family. Asia Insurance, with its Head Office in Lahore, operates a network of 16 branches across the country. The company has recently been granted the license to operate takaful window.
It's Board of Directors comprises seven members. In addition to the CEO, there are four members from the sponsoring family including one executive director, while the remaining two members are independent. The CEO of the company, Mr. Ihtsham ul Haq, brings with him seasoned experience profile. He is assisted by an able team.