The Pakistan Credit Rating Agency Limited
Press Release


Muhammad Noor Ul Haq

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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 has built and sustained its relative positioning in the peer universe. Atlas stands at a very high level in terms of its profitability. The Company has a very high amount of contribution from its core business, as against other companies which garner less support from core business. The Company has gradually enhanced its non-group business over the years. The envisaged strategy is to expand the business size while retaining core profitability. The association with Atlas group provides benefits in terms of sustained low-risk captive business, while ensuring sound governance framework. The Company has a strong panel of reinsurers with favorable treaty terms and prudent risk retention policies. The robust equity and investment book provides ample cushion to Atlas Insurance in terms of fulfilling its claim obligations without affecting its liquidity base adversely.
In terms of Gross Premium Written (GPW), Pakistan’s general insurance industry had a total size of PKR ~108,322mln in CY20, (less than ~1% of its GDP), with a growth of ~3.7% from the previous year (CY19: PKR ~104,453mln). The insurance industry in Pakistan is relatively small compared to its peers in the region. The insurance penetration and density remain very modest as compared to other jurisdictions while the insurance sector remains underdeveloped relative to its potential. Gross premiums written of non-life insurers in India reached USD ~26.5bln in FY21, from USD ~26.4bln in FY20.
The rating is dependent on sustained improvement in business and financial metrics of the Company in line with its relative positioning within the industry. At the same time, the liquidity profile should continue to cushion the liabilities.

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 26 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.