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The Pakistan Credit Rating Agency Limited
Press Release

Date
12-Dec-18

Analyst
Rohail Amjad
rohail.amjad@pacra.com
+92-42-35869504
www.pacra.com

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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 Asia Insurance Company Limited

Rating Type IFS
Current
(12-Dec-18)
Previous
(24-May-18)
Action Maintain Maintain
Long Term A A
Short Term - -
Outlook Positive Positive
Rating Watch - -

Asia Insurance is emerging fast amongst small-sized general insurance companies. It is characterized by a) premium expansion, b) strong liquidity and c) good coverage to liabilities. Underwriting performance has improved significantly with a gradual uptick in business volumes coupled with operational efficiencies. The company's stature has benefited from a recent equity stake taken up by InsuResilience Investment Fund, supported by the German Developed Bank KFW and managed by Switzerland based Impact Investment Manager BlueOrchard Finance. This has boosted the company's liquidity. The governance structure is also improving with the induction of a board member from BlueOrchard.
The business synergies are also expected to materialize. The company foresee significant expansion in the business with more diversification in the product portfolio.

The Positive Outlook captures the company's improved liquidity and future plans towards exacerbated growth. The translation into performance is considered positive.

About the Entity
Asia Insurance Company Limited (ASIC), established in 1979 as a general insurance company,
is listed on both courses of the country. The company is majorly owned (71%) by Mr. Ihtsham ul Haq Qureshi and family.
ASIC, with its Head Office in Lahore, operates a network of 32 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 the man at the last mile for Asia Insurance brings with him over two decades of experience in the insurance sector. Mr. Aisam ul Haq has been replaced by Mr. Thibaud Ponchon since April’18. Mr. Ponchon is a nominee director of KFW

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.