PACRA Maintains IFS Rating of Asia Insurance Company Limited

Asia Insurance is a small-sized, though growing general insurance company. It is characterized by a) profitable premium expansion, b) strong liquidity and c) good coverage to liabilities. . 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 enhanced brand equity, 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 cover. A foreign shareholder, KFW, is taking a sizeable ownership stake in the company. This is expected to bode well for the company.<p>
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

About the Entity
Asia Insurance Company Limited (ASIC), established in 1979 as a general insurance company, is listed on both bourses of country. However, the free float has been limited and the company is almost entirely owned (97%) by Mr. Ihtsham ul Haq Qureshi and family. ASIC, with its Head Office in Lahore, operates a network of 27 branches across the country. ASIC's Board of Directors comprises seven members. Mr Khalid Rashid is the Chairman of the Board. Mr. Ihtsham ul Haq, the CEO and man at the last mile for Asia Insurance, brings with him over two decades of experience in the insurance sector. The board comprises five individuals from sponsoring family, including chairman/CEO, and two independent directors.