The Pakistan Credit Rating Agency Limited
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Faraan Taimoor

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PACRA Maintains IFS Rating of Atlas Insurance Limited

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

Atlas Insurance is a mid-sized insurance company with a constantly growing underwriting performance as a result of quality insurance business and a stable business mix. The rating takes into account robust liquidity profile, providing strong coverage to the company's obligations. The company has a strong panel of re insurers with favourable treaty terms and prudent risk retention policies. The company's association with Atlas group providing benefits in terms of sustained low-risk captive business, while ensuring sound governance framework, remains a key rating factor. The company is leveraging on this relationship to enrich it's product-mix, also reaching out directly to customers independent of the banking channels.
The rating is dependent on sustained improvement in business and financial metrics of the company in line with its relative positioning with in the industry. At the same time, liquidity profile should continue to cushion the liabilities. Improvement in claims management system should translate into reduced claims turnaround time.

About the Entity
Atlas Insurance Limited - listed on Pakistan Stock Exchange - started operations in 1935. The company provides all major types of conventional and non-conventional general insurance services and has a network of 25 branches across the country. Atlas Group - having 78% stake in AIL - is a leading conglomerate of the country with interests in Auto, Engineering, Power, Financial sectors and Trading.

The board includes two independent members and one executive director - CEO. The rest are non-executive directors from various group affiliates. Mr. Babar Mehmood Mirza has been appointed the CEO of the company w.e.f. April, 2018. He is an experienced Insurance Professional and has two decades of work experience in Insurance Industry.

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.