PACRA Maintains IFS Rating of Sindh Insurance Limited
The rating reflects SIL's strong parentage - the Government of Sindh (GoS) and its ability to leverage on the same. "Universal Accidental Insurance Scheme(UAIS)", initiated by GoS, provided impetus to the company's business volume. The scheme has undergone a new regime, by virtue of which the premium size has squeezed though the cash balance has stayed with the company. It is enriching the company's alternative investment. The business from this segment is reduced though still adding value to the company operations. Sindh Insurance has built market business via its linkage with Sindh Bank. To grow the market business is important for the company. Profitability is also an essential. The company has created reserve against IBNR on account of UAIS.
Meanwhile, the Sindh government related business also provides slight comfort. The company needs to develop market related business in order to preserve its relative positioning.
Sindh Insurance Limited (SIL), incorporated as an unlisted public limited company in Dec13, is a wholly owned entity of Government of Sindh (GoS). GoS has presence in most dimensions of financial market through Sindh Bank Limited, Sindh Leasing Company Limited, Sindh Modaraba, Sindh Insurance Limited and Sindh Microfinance Bank. SIL has a seven member board, chaired by Mr. Muhammad Bilal Sheikh, non-Executive Director of Sindh Bank, CEO Sindh Leasing Company Limited and Chairman of Sindh Modaraba Management Limited. Mr. Sheikh is a seasoned banker with over 45 years of diversified experience in banking. Mr. Mushtaq Malik has joined the board of directors replacing Mr. Ahmad Salahuddin as a non executive independent director.
The CEO of the company, Mr. Muhammad Faisal Siddiqui, brings with him diversified experience of more than a decade in life and general Insurance. He is supported by core management team comprising qualified and experienced professionals. BDO Ebrahim & Co. Chartered Accountants has been appointed as new auditors.