PACRA assigns IFS Rating to IGI General Insurance Limited
The rating of IGI General Insurance Limited draws comfort from the growing business volume under the stewardship of an able team. The composition of the book is well balanced with almost equal proportion emanating from the direct business. In this, the business relationships of the group also play a pivotal role, whereby a number of multi-national companies obtain insurance coverage from IGI. Improvement in the IT infrastructure is helping the company in bringing efficiency - notably in claims management.
Underwriting profits improved with contributions from both premiums side as well as claims.Post de-merger,the parent company, IGI Holdings Limited(formely:IGI Insurance Limited) has injected a sizeable capital into the company.This is preserved mostly as in the form of liquid investments. IGI has designed a framework around the management of the investment book. The top group resources provide strategic direction and oversight to this.
The company aims to grow by focusing more on customer satisfaction in profitable segments. The company targets tapping retail business in non-conventional avenues over the medium-term.The assigned rating also takes into account its association with Packages Group and comfort is drawn from its sound governance practices of the group.
The rating remains dependent on the management's ability to strengthen its market position in a competitive landscape while ensuring underwriting profitability. The liquid investment book need to be preserved and indeed improved in line with the growing business volumes.
The IGI Holdings holds 100% stake in the company.The IGI Holdings is owned by Packages Group, which is ranked amongst the renowned industrial groups of the country, having diversified interests in packaging, dairy, pharmaceutical, and financial sectors.The overall control of the company vests in six-member Board of Directors comprises two independent directors, one executive director and three non-executive directors representing the main sponsoring family.
A.F. Ferguson & Co. Chartered Accountants issued an unqualified audit report pertaining to financial statements for CY17. The company has a comprehensive organizational structure with clearly demarcated reporting lines, ensuring segregation of duties.