The Pakistan Credit Rating Agency Limited
12-Dec-17
Analyst
Rohail Amjad
rohail.amjad@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Maintain Entity Ratings of TPL Life Insurance Company Limited
| Rating Type | IFS | |
|
Current (13-Dec-17 ) |
Previous (30-May-17 ) |
|
| Action | Maintain | Maintain |
| IFS Rating | A- | A- |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
The rating incorporates the refined business strategy implemented by the new sponsor. The strategy encompasses innovation in its products and increased penetration in lower income segments.The strength of the new sponsor is evident from fresh injection of ~ PK 100mln at end Dec-16 – further equity of PKR 80mln was injected at end- Mar 17. The management of the company keeps to target certain segment of business. TPL Life has adopted a bottom life centric approach targeting low ticket business. The company is going through the business process revamp pot acquisition; the management expects fruits of this exercise to emerge in the near future. An IPO is also expected soon. The approval in lieu of the IPO has been obtained from SECP and Stock Exchange.
About
the Entity
TPL Life Insurance Limited (Formerly Asia Care Health and Life Insurance Company Limited) was incorporated in 2008 and obtained license to carry on life and related line of business in 2009. During CY16, TPL Trakker Limited, a subsidiary of TPL Holdings (Pvt) Limited, acquired 100% stake of the company. TPL Trakker Limited (TPL), listed on Pakistan Stock Exchange, is Pakistan’s largest vehicle tracking and fleet management company.
The new board of TPL Life consists of eight members, all from the sponsoring group. Mr. Jameel Yusuf Ahmed, the chairman, is a veteran businessman and is also the Chairman of TPL Holdings (Pvt) Limited. The new CEO of the company, Mr. Faisal Abbasi, is a professional having experience of over 19 years in Life Insurance and banking sector. He is assisted by a team of experienced professionals.