The Pakistan Credit Rating Agency Limited
27-Jun-19
Analyst
Zeeshan Munir
zeeshan.munir@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Maintains IFS Rating of TPL Life Insurance Company Limited
| Rating Type | IFS | |
|
Current (27-Jun-19 ) |
Previous (27-Dec-18 ) |
|
| 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 injections raising the paid up capital to PKR 800mln. The company has seen decent growth in the topline though profitability indicators lag.
The management of the company keeps targeting niche segments of businesses. TPL Life envisages to expand business volumes, wherein which size matters as it provides economies of scale, while further boosting the company's capacity to write new business. The management has ambitious growth targets, though zenith will be reached gradually
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 Corp Limited, sold 12.5% stake of the company to Sindh Bank Limited reducing its holding to 75.62%. whereas the remaining 14% stake in the company is held by two individuals
Mr. Faisal Abbasi, the CEO of the company, is an experienced professional with over 19 years in Life Insurance and banking sector. He is assisted by a team of experienced professionals.