The Pakistan Credit Rating Agency Limited
Press Release


Rohail Amjad

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PACRA maintains IFS Rating of Asia Insurance Company Limited

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

The rating captures sustained fundamentals of the company alongwith the good risk absorption capacity of the company. Revenue has been augmented as the company expands it footprints. Improvement in operational efficiency has also been witnessed leading to underwriting profitability. Sustainability in underwriting performance is pivotal. The presence of InsuResilience Investment Trust, funded by the German Developed Bank KFW and controlled by the Swiss-based Impact Investment Director BlueOrchard Finance, provides comfort. However, any positive development through new product slate is yet to transpire. The adequate liquidity position and strong financial risk profile of the company lend support to rating. Going forward, the emergence of new products and improved profitability is crucial.
Prior to COVID-19, the general insurance industry witnessed a growth of 11% YoY. The current pandemic affected the volumes, which led to a contraction in the growth. However, volumes have picked up post-June 2020 amidst increase in economic activities throughout the country.
The volumes need to sustain, indeed, improve in tandem with the longer historical trend. The interest rate regime would impact the fixed income stream but the equity market is improving though requiring a prudent approach.
Positive Outlook captures the forecasted business trajectory of the company given its advancement on innovative products for the local market. Impetus through foreign partner in the form of new revenue streams is crucial.

About the Entity
Asia Insurance Company Limited (ASIC), established in 1979 as a general insurance company, is listed on both courses of the country. The company is majorly owned (71%) by Mr. Ihtsham ul Haq Qureshi and family.
ASIC, with its Head Office in Lahore, operates a network of 32 branches across the country. ASIC's Board of Directors comprises seven members. Mr. Khalid Rashid is the Chairman of the Board. Mr. Ihtsham ul Haq, the CEO, and the man at the last mile for Asia Insurance brings with him over two decades of experience in the insurance sector

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.