PACRA Maintains IFS Rating of Askari Life Assurance Company Limited
The IFS Rating of Askari Life Assurance Company Limited (the Company) continues to centrally factor in the strategic importance to, and expectation of support, if required, from its core sponsorship - Army Welfare Trust, both on an ongoing basis and in the event of distress. The Army Welfare Trust has an established presence in the insurance industry through Askari General Insurance. The Company faced a deficit but has made strides in profitability by growing revenue and expanding its presence in bancassurance. Despite incurring higher operational expenses and subsequent increased losses compared to the previous year, the Company's strong commitment to enhancing performance and adapting to market conditions instills confidence in its potential for sustained growth. The growth in Askari Life’s gross premium written was substantially higher in CY22 at 95.3% YoY compared to the previous year, supported by both new business and renewal premium. Currently, Askari Life is only focusing on life business. Risk absorption capacity and capitalization levels are moderate. Any dilution therein has the comfort backing of the sponsors. Increase in market share along with converting underwriting losses into profitability remains crucial. Moreover, maintenance of adequate capital in wake of increasing business volumes and consequent support from sponsors would remain important.
Sustained improvement in the business and financial risk profile of the company in line with their relative positioning in the industry remain vital to the rating. Concurrently, the liquidity profile of the Company should continue to cushion the policyholder's liabilities. Growth in topline and underwriting profits remain essential
Askari Life Assurance Company Limited, formerly known as East West Life Assurance Company Limited, a quoted public company, listed on the Pakistan Stock Exchange, commenced operations in Feb1993. With its head office in Karachi, the Company operates in main cities with branches in Lahore, Islamabad and Karachi. It is majority owned by Army Welfare Trust (AWT) with a stake of 66.6%.
Askari Life’s board comprises of eight members including the CEO. The board comprises of five non- executive, two independent and an executive director. The CEO of the Company, Mr. Jehanzeb Zafar has a significant experience of life insurance industry.