PACRA Maintains IFS Rating of Habib Insurance Company Limited
The rating incorporates the Company's association with astute sponsors Habib Family. This, while providing stability to revenue stream in the form of captive business, establishes a sound governance framework. The rating takes note of HIC’s business strategy that encompasses enhancing its market presence with innovative products while diversifying revenue stream. Product innovation and extended market outreach, capitalizing on Habib group, bodes well for HIC’s business profile. The company's conservatism, in the form of low risk retention, has continued yielding profitability. Profitable growth is a challenge, which is essential to the relative positioning of the company in future. HIC maintains a reasonable, fundamentally strong and diverse investment portfolio, which not only provides risk absorption capacity, but also supports profitability.
The rating is dependent on strengthening of company's relative position in the market. In addition, improvement in the underwriting profitability is important. The liquid profile is adequate for current level of operations, the strengthening is necessitated as the company grows
Habib Insurance Company, part of Habib Group, was incorporated as a Public Limited Company in 1942. It is listed on Pakistan Stock Exchange, with a nationwide network of 17 branches. HIC is 68% owned by Habib Group, which is one of the renowned and well-established groups, having exposure in industrial and financial sectors.
The overall control of the company vests in the Board of Directors, comprising seven members, with six belonging to the Habib family. The board has observed significant change in last year. Mr. Shabbir Gulamali, having over two decades of experience in insurance industry all of which is with HIC, is CEO of the company.