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The Pakistan Credit Rating Agency Limited
Press Release

Date
28-Feb-19

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 Sindh Insurance Limited

Rating Type IFS
Current
(28-Feb-19)
Previous
(06-Dec-18)
Action Maintain Maintain
Long Term A+ A+
Short Term - -
Outlook Stable Stable
Rating Watch - -

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.

About the Entity
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.

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.