PACRA Upgrades IFS Rating of Atlas Insurance Limited
Atlas Insurance Limited distincts itself amongst medium-sized general insurance companies on the basis of its 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 footprint in the market. The company is eying large public sector projects to drive future growth. Atlas Insurance, with launch of window takaful operations, now aims to spur growth through Shariah compliant products as well. The rating takes significant comfort from the robust liquidity profile emanating from a diverse investment book that also provides robust coverage to the company's obligations. It has prudent risk retention policies that are well supported by solid reinsurance arrangements. 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, the size of liquid investments should increase in tandem with growth in business. Recent improvement in claims management system should translate into reduced claims turnaround time.
Atlas Insurance - listed on PSX - started operations in 1934. It provides all major types of conventional and non-conventional general insurance services and has a network of 21 branches across the country. 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 one independent director. The CEO, Mr. Arshad P. Rana, has profound experience both in domestic and international market. He is assisted by a qualified management team.