logo
The Pakistan Credit Rating Agency Limited
Press Release

Date
07-Dec-18

Analyst
Zeeshan Munir
zeeshan.munir@pacra.com
+92-42-35869504
www.pacra.com

Applicable Criteria

Related Research

Disclaimer
This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Maintains IFS Rating of Excel Insurance Company Limited

Rating Type IFS
Current
(07-Dec-18 )
Previous
(19-Apr-18 )
Action Maintain Maintain
IFS Rating A- A-
Outlook Stable Stable
Rating Watch - -

The rating reflects Excel’s emerging position in the general insurance industry. This is supported by a sizeable and duly compliant capital structure, as a result of equity injection. The equity of the company is deployed in liquid avenues. The Investment Policy Statement envisages pre-dominant exposure towards equities (Large, mid and small) with an adequate balance kept in fixed income avenues. The management is confident as to the sustained risk profiling of the investment book, based on historical performance. In times of stress, this remains a challenge. The team has been instituted with the mandate to grow business. The envisaged strategy is conservative with gradual build-up of business after the enlistment with banks. This is led by the astute sponsors, having good understanding of the risks involved.
The rating is dependent upon execution of envisaged business strategy: generation of business volume along with profitability from the core business is important. Meanwhile, liquidity and overall financial risk metrics must be adhered to.

About the Entity
Excel Insurance Company Limited (EICL) is a public limited company. It was incorporated in Pakistan as an unlisted Public Limited Company on 10 August 1991 under Companies Ordinance, 1984 with the objective to carry out General Insurance Business as specified under Insurance Ordinance 2000 and Insurance Rules 2002. EICL obtained business license on 06 October 1994. The company is registered at Karachi, owned by Mr. Ghulam & his family. Mr. Ghulam Muhammad is one of the founder member/sponsors of this company since inception. Mr.Abdul Haseeb Fakih has taken over the position of CEO. He was previously working with Takaful Pakistan.

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.