PACRA Maintains IFS Rating of Excel Insurance Limited | Rating Watch assigned

The rating reflects limited risk appetite. The equity of the company is deployed in liquid avenues. The Investment Policy Statement envisages pre-dominant exposure towards equities (Large, mid and small) with an adequate balance kept in fixed income avenues. In the midst of depressed equity market, the market value of the investment book exceeds the carrying and the difference in it has increased. The sponsors of the company previously decided to wind-up the company. The plan has now been reverted. The company may now be offloaded to prospective sponsors, hence the rating is placed on Rating Watch - developing status.
The rating may be accordingly adjusted if there is a change in the risk appetite of the company before or after the strategic divestment
The rating is dependent upon the execution of of a consistent business strategy and take up of the company by any prospective buyer. Comfort is drawn from the company's liquidity. The rating watch takes into consideration the uncertainty surrounding the takeover of the company planned in the near future.

About the Entity
Excel Insurance Company Limited (EICL) is a public limited company. It was incorporated in Pakistan as an unlisted Public Limited Company on 10 August 1991 under Companies Ordinance, 1984 with the objective to carry out General Insurance Business as specified under Insurance Ordinance 2000 and Insurance Rules 2002. EICL obtained business license on 06 October 1994. The company is registered at Karachi, owned by Mr. Ghulam & his family. Mr. Ghulam Muhammad is one of the founder member/sponsors of this company since inception. Mr.Abdul Haseeb Fakih has taken over the position of CEO. He was previously working with Takaful Pakistan.