The Pakistan Credit Rating Agency Limited
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Rohail Amjad

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PACRA Maintains IFS Rating of TPL Life Insurance Company Limited

Rating Type IFS
Action Maintain Maintain
Long Term A- A-
Short Term - -
Outlook Stable Stable
Rating Watch - -

The company has been witnessing increased business volumes ; majority emanates from group business. The topline has been beefed up though the margin is minuscule. Management expenses have traditionally been on a higher side however they are improving in terms of percentage of the premium. The company has endured losses from the investment-linked as well as group business. The deficit has been overturned due to contribution from policyholder's reserve . The Loss Ratio is high in group health business. Support has been received from the sponsor in the form of equity injection through a right issue. Further liquidity is expected to be acquired; the sponsor is exploring different avenues in this regard. Going forward, the company envisages improved topline while simultaneously increasing profitability. Reduction of the loss-making segment while underwriting prudential business is vital.
The rating is dependent on the company’s ability to execute its existing business plan in an efficient manner; herein, consistent growth in top-line and underwriting profits are essential. Maintenance of 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.TPL Life allotted 10mln Right shares at PKR 10/ share to TPL Corpo Limited, increasing its holding to 81.5% whereas the remaining 19.5% is shared by Sindh Bank (10%) and two individuals(9%).

Mr. Faisal Abbasi, the CEO of the company, is an experienced professional with over two decades of experience 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.