PACRA Maintains IFS Rating of SPI Insurance Company Limited

The rating reflects the stable business profile of the company. The company has witnessed increased premiums however this has not been adequately reflected in its profitability. The management is confident that they will build the volumes in the ongoing year and going forward, as well. A business support is expected from United Insurance. The organization takes benefit from synergistic approach at group level - United International Group (UIG) - and replicate the group's established practices. The contribution from alternative income stream – investment book – is small; needs to improve. The Company has slightly beefed up its liquidity position. It also booked a gain on its investment in Apna Micro Finance Bank
The rating depends on the ability of the management to capitalize on the well-built platform for business expansion of its brand and group. At the same time, the level of liquidity must improve and the resulting profitability should also increase specifically in window takaful operations.

About the Entity
SPI Insurance Company Limited (SPI), an unquoted public limited company, was established in 2005. The company is majority-owned by UIG (70%), followed by Silkbank (23%) and Saudi Pak Leasing (7%). The overall control of the company vests in a BoD comprising seven members; five members represent UIG, whereas two members represent Silkbank. UIG is a diversified group having interests in insurance, tracking business, IT, agriculture, insurance brokerage and microfinance-banking.

Mr. M. A. Shahid, CEO/MD since beginning June 2011, is a law graduate having extensive insurance industry experience, especially with The United Insurance Company of Pakistan - a flagship company of UIG. He is assisted by a team of experienced professionals.