PACRA Harmonizes IFS Rating of Askari Life Assurance Company Limited
Insurer Financial Strength (IFS) rating is an independent opinion on the relative “capacity of an insurance company to meet policyholder and contract obligations”. To facilitate insurance companies and users of IFS ratings, PACRA has modified the IFS rating scale. The primary objective behind this modification was to: a) Create distinction in symbols and definitions of IFS Ratings and Credit Ratings; previously same symbols were being used for both type of ratings. Now IFS symbols are exclusive for IFS ratings b) Eliminate ambiguities in terms of “Rating Category” and “Notch”; this has now been achieved in the modified scale, which will be helpful in understanding the meaning and connotation of each rating category and notch, c) Update certain definitions for more clarity.
This is expected to eliminate any overlap or ambiguity regarding rating categories and notches; thus, facilitating all stakeholders. The modified scale is applicable for all outstanding IFS ratings including “Askari Life Assurance Company Limited”.
Askari Life Assurance Company Limited (ALAC), formerly known as East West Life Assurance Company Limited, a quoted public company, listed on the Pakistan Stock Exchange, commenced operations in Feb-1993. With its head office in Karachi, the company operates in main cities with branches in Lahore, Islamabad and Karachi. The company is majority owned by Army Welfare Trust (AWT) with a stake of 66.6%. AWT was set up in 1971 by Pakistan Army for promoting the welfare of retired personnel and Shuhada of the Army, through the creation of income and employment generating activities. AWT is currently engaged in real estate, security services, sugar, and lubricants. It manages a sizable book of strategic investment, which yields a significant amount of dividend every year to the fund.
ALAC’s board comprises of eight members including the CEO. The board includes senior executives of the sponsors, and two independent members. Mr. Jehanzeb Zafar, having significant experience of life insurance industry, is the CEO. A team of professionals assist him.