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The Pakistan Credit Rating Agency Limited
Press Release

Date
26-Dec-18

Analyst
Faraan Taimoor
faraan.taimoor@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 Maintans IFS Rating of IGI Life Insurance Company

Rating Type IFS
Current
(26-Dec-18)
Previous
(27-Jun-18)
Action Maintain Maintain
Long Term A+ A+
Short Term - -
Outlook Stable Stable
Rating Watch - -

Packages Group, with the brand of IGI, has been operating in the industry since 1953. IGI Life has been a step towards holistic presence in insurance industry - General as well as life. This is unlocking synergistic benefits. The market share of the company has slightly diluted, owing to change in the business strategy: to reduce dependence on the single premium and shift towards the regular premium. The company's persistency in the second year is the highest, which is a good omen, though first year persistence will improve as shift from single premium transpire. The agency network of the company has continued to expand, whereas, bancassurance arrangements with some of the leading banks of the country are yielding benefits. The company has a diverse product slate, targeting all segments of the market. Going forward, IGI Life aims to further penetrate the market, on the back of expansion in branch network and gradually building up portfolio through it's new product 'Vitality'. The company's association with Packages Group engenders sound governance framework remains a key rating factor.
The rating is dependent on sustained improvement in business and financial risk profile of the company in line with its relative positioning within the industry. At the same time, liquidity profile should continue to cushion the policyholder's liabilities. The performance of company's new product 'Vitality' remains crucial.

About the Entity
IGI Life Insurance Limited (IGILife), a quoted public company, listed on the Pakistan Stock Exchange, started its operations in May-1995. With its head office in Karachi, the company operates through three business Hubs - South, Central and North - with a total of 24 branches. IGILife is majority owned by IGI Holdings. In 2013, erstwhile IGI Insurance Limited entered into a share purchase agreement with American Life Insurance Company for acquisition of majority stake (69.67%) in its Pakistan business. IGI Insurance Limited obtained control in Apr-14. As a result of demerger IGI Life is now owned by IGI Holding Pursuant to share purchase agreement, an additional stake (12.28%) was acquired, thereby, increasing the cumulative shareholding to 81.97%.

The overall control of the company vests in seven member board of directors. Mr. Syed Hyder Ali, the CEO of the company since Apr-14, carries more than three decades of experience in different industries. Currently, he is also serving as CEO of Packages Limited. Mr. Nadeem Rehman Malik and Mr. Ali Nadim in their roles as Deputy CEO and COO provide vital insight and guidance in the day to day affairs of the company. They are assisted by a team of experienced professionals.

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.