logo
The Pakistan Credit Rating Agency Limited
Press Release

Date
26-Jun-18

Analyst
Rohail Amjad
rohail.amjad@pacra.com
+92-42-35869504
www.pacra.com

Applicable Criteria

Related Research

Disclaimer
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 TPL Life Insurance Company Limited

Rating Type IFS
Current
(26-Jun-18)
Previous
(13-Dec-17)
Action Maintain Maintain
Long Term A- A-
Short Term - -
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 injections raising the equity to PKR 700mln. An IPO is also in the pipeline. The management of the company keeps targeting niche segments of businesses. TPL Life is expanding its business volume, wherein which size matters as it provides economies of scale, while further boosting the company's capacity to write new business. The management has high growth targets, though it would take time to reach the zenith.
The rating is dependent on the company’s ability to execute its existing business plan in an efficient manner; herein, growth in top-line and underwriting profits are mandatory. Stagnant liquidity levels are pivotal for rating.

About the Entity
TPL Life Insurance Limited was incorporated in 2008 and obtained license to carry on life and related line of business in 2009. During CY17, TPL Corp Limited, (formerly TPL Trakker Limited), acquired 100% stake of the company. Later on, two new partners have been injected. TPL Trakker Limited has only recently been renamed to TPL Corp Limited.

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.

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.